Will We See an Easter Bunny Rally?

Read Time: 
4 min
Posted by 
As the team's Capital Markets Analyst, Jacob conducts market and investment research and assists in the development of business strategy to serve our clients more effectively.
December 27, 2022

The question of the month was will we get a Santa Claus rally? And I think with the performance over December, we can confidently say that didn’t happen. One of the main reasons is that the Federal Reserve has held firm that it will not bend until inflation is back down to 2%, which is a good and bad thing for markets.

A Santa Claus rally describes a sustained increase in stock prices that occurs in the week leading up to the end of the year. It is theoretically caused by people’s end-of-year retirement contributions, Wall Street’s week off (which causes the market to be more saturated with optimistic retail investors), and people’s year-end bonuses.

So that is a Santa Claus rally, it’s simply a random occurrence where stock prices are supposed to go up because there is new money coming into the market and less pessimistic institutions playing (selling) in that market.

This year, more people have had their wallets stretched so they couldn’t make as many contributions, end-of-year bonuses were cut, and institutions are more active because we live in a period of higher volatility.

We are patiently waiting for the Federal Reserve to end its hiking cycle and that is what everyone else is waiting for as well. So maybe we won’t a Santa Claus rally but we could possibly have an Easter Bunny rally.

About us
Fjell Capital is a leading wealth management firm designed to deliver results for people who desire to be excellent with their finances. Starting at $125/month and a 0.75% asset management fee you can work with Fjell Capital. No asset minimums. Learn more about Fjell Capital here.
Subscribe to the Weekend Reads
Received, interested in becoming a client?
Thank you! Your submission has been received!
Something went wrong!
Email Us
Top posts
recent posts
Schedule a 15-minute Call
Our clients enjoy unbiased advice and a low monthly fee. Schedule your free consultation today.
Choose a Time
COntact us

How can we serve you?

How can we serve you? We invite you to contact us today so we can help answer any questions you may have about your financial situation.

Left pointing blue arrow.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
©2022 Fjell Capital. All Rights Reserved.

-------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------