What to play for St. Patrick's Rally Santa? | Closer to the Stock Exchange

St. Patrick's Rally Nicholas is a phenomenon known to probably every investor. Named and described by an analyst and creator Stock Trader's Almanac Yale Hirsch's period usually takes place in the last week of December and the first days of January. Sometimes the Santa Rally starts as early as the middle of the last month of the year, and historically this period has seen growth S & P500 index on average by 1,38%. Between 1960 and 2020, periods of strong December stock price increases occurred in about ⅔ cases.

Where did he come from st. Santa?

There may be several reasons for the occurrence of the Santa Claus rally. The most frequently mentioned is tax optimization, which consists in closing losing positions and reinvesting recovered funds before the end of the tax year. Among the reasons for the shopping frenzy, Christmas bonuses are also mentioned, because the injection of cash - especially in the United States - may encourage some investors to open further positions. Also, the mere expectation that a rally will take place can lead to its creation - the psychology of crowds causes a large number of investors to buy shares in the hope of December increases, which results in a self-fulfilling prophecy.

We invite you to the next webinar Closer to the Stock Exchangein which Maciej Kietliński looks at the potential beneficiaries of the possible St. Santa.

In the latest webinar:

• What is the Rally of St. Santa?
• How were the previous St. Santa?
• Which companies are worth watching for the St. Santa?

About the host

Maciej Kietlinski - professionally involved in the analysis of capital markets since 2017. He gained the necessary experience in such renowned companies as BGŻ BNP Paribas or Noble Securities. In his last place of work, he specialized in the analysis of listed companies from the dynamically developing gaming sector. He also gave stock exchange comments on TV Biznes24, Parkiet.tv or Inwestorzy.tv and for Forbes, Reuters, Parkiet, Gazeta Wyborcza and PAP Biznes. Kietliński also focuses on development, which is why he is currently working on a doctoral dissertation in economics at the Warsaw School of Economics. CIIA, Investment Advisor or Stock Broker.

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