Santa rallies are a tradition on Wall Street.
Bryan R. Smith is a photographer.
Doug Ramsey of the Leuthold Group said that those looking to maximize the stock market's Santa Claus rally should wait until after Christmas.
The firm's chief investment officer wrote in a note that the rally would start on December 27 and run through January 4. The last five trading days of a given year have historically spanned the period, as well as the first two of the new year.
The S&P 500's gain over the period has been far more than the normal seven-day average. The Santa Claus rally has shown resilience even after being labeled a trend in 1972, posting an average gain of 1.26 over the period.
Ramsey recommended that investors bet on the tech-laden Nasdaq to get more juice out of the Santa Claus rally. The average return since 2000 is skewed by the bubble years of 2000 and 2001.
Check out the history of the Santa Claus rally.
The Leuthold Group is made up of companies.
Business Insider has an original article.
