3 min read

Santa Rally Stocks

Ho ho ho, we hear the jingle bells ring and we all know what that means: it’s that time of year again, the Santa Claus Rally! It’s also Christmas and New Years and we’re definitely excited for the festivities, but the real festivities come in our gift to you: Santa Rally Stocks.

Before you get excited and unwrap your gift, let’s first jump into what The Santa Claus Rally even is. Based on the name, you can probably already gather that it definitely has something to do with the time surrounding Christmas. The Rally, or more clearly the phenomena, takes place between Christmas, particularly the last five trading days of December, to the first two trading days of January.

Since the 1960s, more often than not, the market has followed this phenomena. Bringing in numbers, data shows that this week, compared to other weeks of the year, is more likely to prove higher gains. 77.9% of the time this week is comparatively higher in gains (typically the S&P 500 sees a 1.3% gain during the rally).

Although no one knows why this phenomena exists for sure, multiple theories have circulated. Psychologically speaking, let’s take a closer look at the time-frame. It’s the holidays! Optimism rises and with it more buying and thus higher stock prices. Similarly, the belief that everyone is optimistic creates a trust in the phenomena that manifests itself in buying more stocks.

Again, time-wise, this is similarly a time of tax considerations and year-end bonuses. Additionally bringing the market lens, institutional investors bulk up their portfolios with big stock buys in this time frame.

Although the rally is not a solid guarantee, the statistics show that it’s more likely than not. In light of that, we’ve decided to introduce the Santa Rally Stocks as part of our thematic investment rollout.

We’re launching the Santa Rally Stocks during the month of December leading up to those golden seven-days (namely the holidays). After research and consideration, we extracted the top 10 securities from the S&P 500’s 20 highest weighted stocks. The S&P 500 index consists of the largest companies in the United States with a significant percentage of the total US stock market capitalization. From the top 20 of these stocks, we chose the ones with the largest average gains during the Santa Claus Rally time-space.

Look for our rollout of Santa Rally Stocks and happy investing.


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Past performance is no guarantee of future results. Your investment can fluctuate, so you may get back less than you invested. Consider each product’s risk(s) before investing.

Baraka is not a financial adviser and therefore does not provide financial advice. Our content is informational only.

Iman Haider
3 min read