Wall Street hoping for Santa Claus Rally
PHOENIX -- More than a month away from Christmas investors are anxiously hoping that Santa comes for a visit and Congress isn't Scrooge.
A Santa Claus Rally is a surge in stock prices that often occurs during the week between Christmas and New Year's Day. KTAR's Smart Investor Wayne Stutzer said it has been a good predictor of the market's performance in January and the year ahead.
"It has worked more times than not," he said. "As January goes, so goes the year. If you think that's going to happen you start buying ahead of that time."
But this year there's a twist, known as the fiscal cliff, and Congress could put a stop to the rally.
"You may see more selling than buying so we may not get the typical rally. We may get coal this year," said Stutzer.
Stutzer said he's hopeful Congress and the president can hammer out an agreement that keeps the nation from going off the fiscal cliff.
"The best Santa Rally would be if Congress does do something positive."
Jim Cross, Reporter