Year-end market rally will start this week, says Goldman's Rubner

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Year-end market rally will start this week, says Goldman's Rubner

"We are entering the best seasonal period of the year for US equities," Rubner wrote in a Friday note, asserting that the rally will begin this week and continue into the start of 2025.

Historically, December has been a favorable month for equities, particularly during election years. Rubner pointed out that next week marks the start of the holiday trading season, which traditionally includes some of the year's best trading days leading up to Thanksgiving. The rotation from large-cap tech stocks, such as the"Magnificent 7," into smaller-cap and value-driven sectors like financials, industrials, and energy has been a key driver of this trend.

Looking ahead, Rubner sees the January effect—a phenomenon where equities often gain as new capital enters the market—amplifying the rally.

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