Investors are anticipating the Santa Claus rally at the end of the year and considering what negative returns heading into the new year could mean for 2025. Adam Turnquist, chief technical strategist at LPL Financial, joins Madison Mills and Sheena Smith on Morning Brief to discuss the market outlook for 2025. 2025.
“We're nearing the end of the Santa Claus Rally period,” Turnquist explained, adding, “For those who aren't familiar, that's the last five business days of the year and the first two business days of the year. , it ends after market close on Friday [and]Of course, it's the S&P level that we're looking at. [500 is] 5,974. ”
The strategist notes that if Santa Claus's rise is positive, “returns in January tend to be positive, and the following year as well.” On the other hand, if Santa Claus's rise is negative, “the average annual return for the following year is only 5%.” ” points out.
Turnquist believes “realistic optimism” will “set the tone for 2025,” outlining that he expects “a return to normal volatility” and “normal stock prices.” He added that the market outlook for the new year is for the S&P 500 to return in the low single digits. That suggests the good news may already be priced in.
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This post was written by Naomi Buchanan.
