How big a year-end stock-market rally to expect this time

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'The stock market will rally between now and the end of the year,' says MktwHulbert -- but what do we really mean by 'rally'?

But that doesn’t mean there will be the “year-end rally” that many advisers have begun telling their clients to expect.

Some even think the so-called Santa Claus Rally begins in late October, just like those shameless marketers who put up their Christmas decorations before Halloween. To be sure, you’d need perfect foresight to capture that gain, since only after the fact do we know when November registers its low and its December high. Still, this rally potential certainly seems noteworthy: On an annualized basis, it’s equivalent to a gain of over 50%. If the stock market were to rally this much this year, and assuming November’s low is no lower than where it stands today, the DJIA would trade nearly as high as 29,000 in December.

 

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MktwHulbert Oh there's always a rally around the corner for this guy.

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