The last month of the year always leaves a remarkable experience and especially for the investors. We had already entered the last month of the year 2019 so Santa Claus rally may power up one last time.
The rally is a Wall Street’s nickname which usually holds the stock market and this can been seen in the final five trading days in a year.
The Dow Jones Industrial Average is a stock market index that measures the stock performance of 30+ large companies listed on stock exchanges in the US. As per Dow Jones data, the S&P 500 index during the stretch has gained an average of 1.3%. In last year S&P lost 9.1% at the end of the year which is typically considered good for stocks.
There is a higher possibility that in 2019 it will be best for stocks since the 1990s; the benchmarks depict (predict) the higher showing rate in December this year.
Stock Market-risk always remain nothing is assured
Side by side US-China trade war raised the tensions among all countries around the world which is a tension for both countries. US President Trump government implemented a 15% additional import tariff on the Chinese goods worth of $160 million in December. China opposed these higher tariffs although there was no comment back from US authority. The world is facing an issue on cross border trade apart from this there is a tension already running on the US-Mexico border.
So far the report of S&P has gained 25.3% meanwhile the Dow has gained 20.3% so far this year. The Dow last gained in January, when it rose 7.2% and if they manage to pull off this year can be the best year since the 1990s.
The senior market strategist at LPL Financial said that S&P 500 will have a good month with the performances in November. Also, when the market does well for the first 11 months, there is a high possibility of a good month-end.
Jack Janasiewicz, portfolio manager said “If consumption growth holds at 2.5%, there’s no reason the economy can’t grow at about 2%. That can easily translate to 5% to 7% earnings growth next year” he said.
The Labor Department will issue the track record of the US job growth for the month of November, in which the investors will able to see the signs of the consumer of the US which maintains the strength of the US economy.