Will There Be a Santa Rally This Year?

In the last 50 years, global equity markets have risen in December more times than they've fallen, and UK investors are pricing in a decisive General Election win to boost returns

James Gard 2 December, 2019 | 11:43AM

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UK investors hoping for a Santa Rally this year must factor in the added complication of the General Election on December 12 and the prospect of Britain leaving the European Union on January 31 next year.

The so-called Santa Rally is the phenomenon whereby global stock markets soar in December. Rather than being driven by investors' getting into the festive spirit, the trend is typically prompted by professional fund managers who have historically tended to reduce their cash holdings and pile in to the stock market to boost returns before reporting to clients in the New Year. 

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James Gard  is content editor for Morningstar.co.uk

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