MARKETS
The final days of December are here, which means we’re officially in the period of the Santa Rally. Alright, so what’s happening in the markets? Well, after some rough sessions last week, the markets are showing signs of recovery.
In case you’ve forgotten, the markets had been under pressure due to the Fed confirming its monetary policy for 2025, which, as it turns out, will include fewer rate cuts than expected.
As I mentioned back then, the market reaction was simply overblown, and that’s becoming clear now, with general indices starting to bounce back.
Does this mean the Santa Rally is kicking off? If the markets keep up their current pace, it’s looking like Santa just might make an appearance!
WHAT DOES THIS MEAN?
But does it even matter? Will anything actually change if it happens or not? Well, to better understand the Santa Claus Rally, it’s worth taking a quick look at its history.
The term’s creator, Yale Hirsch, once said, If Santa fails to call, bears may come to Broad and Wall.
His son, Jeff Hirsch, has continued the tradition, highlighting the importance of this phenomenon alongside two other indicators: the “First Five Days,” which gauges market trends in the first five days of the year, and the “January Barometer,” which looks at the S&P 500’s performance in January.
When these indicators are positive, the market rises 90% of the time, with an average gain of 17.7%!
Sounds great! Yes, it does. But there’s always a flip side. As Jeff Hirsch points out, in years when there’s no Santa Claus Rally, we often see declines—though that comes with plenty of buying opportunities.
One Stock To Keep An Eye On
Bristol-Myers Squibb
OPDIVO & YERVOY
Big news to kick things off! Bristol-Myers Squibb has secured approval from the European Union for Opdivo in combination with Yervoy as a first-line treatment for a very severe type of colorectal cancer.
Why is this such a big deal? It’s big because this treatment offers hope to people who truly need it. And of course, for the company, it means access to a larger market, better financial results, and more growth potential.
To put it in perspective, Opdivo and Yervoy are already approved for other cancers, like lung and kidney cancers, but this new approval further solidifies the company’s position at the top of the oncology field.
SOTYKTU
Speaking of treatments, here’s the next big news: Sotyktu, a drug for active psoriatic arthritis, has shown impressive results in clinical trials. It achieved a 20% improvement in symptoms within just 16 weeks.
Okay, but why does this matter? It matters because Bristol-Myers continues to innovate. Sotyktu has the potential to become one of the leading treatments for this condition, and as we've seen, its safety profile is excellent. Another strong card for the company!