Page 42 - DIY INVESTOR MAGAZINE - NOVEMBER 2018
P. 42

DECEMBER MARKET:
THE UK STOCK MARKET ALMANAC 2018
   Market performance this month
Towards the end of the year shares tend to rise strongly – a characteristic sometimes known as the end of year rally, or the Santa rally. It makes December the best month of the year for investors.
Since 1984 the FTSE 100 index has risen in 78% of all years with an average monthly return of 2%. Incredibly, the index has only fallen three times in December since 1995 although two of those times
were in 2014 and 2015 – so things may be changing. In addition, the volatility of December returns is significantly less than any other month.
The market tend to increase gently in the first two weeks of the month, but then goes into overdrive and rises strongly in the final two weeks. Indeed this is the strongest two week period in the whole year, with the three strongest days of the year all in this two week period.
The latest edition of Stephen Eckett’s fascinating reference
book may have you scratching your head in search of a rational explanation for what is presented, but one thing is for sure, you’ll return to it again and again.
  DIY Investor Magazine | Dec 2018 42

























































































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