Live After Quit

Rev Up the Holiday Cheer! Santa Just Tuned the Sled for Value

Santa Claus kicked off the seasonal rally on Wall Street with a resounding roar as he revved up his famous sled this week, riding the market’s momentum to the highest levels of 2020. In a major shift from the turbulent days of March, when the Federal Reserve was forced to step in and inject liquidity into the markets, investors are reenergized and bullish about the prospects for the coming months. With the Fed keeping rates low for the foreseeable future, analysts expect Santa’s sleigh to keep the markets flying high through the end of the year. The express ride to the top is likely aided by a refocusing of investor sentiment. A shift away from growth stocks and towards value stocks has been seen in recent weeks, which has opened up opportunities for the wise investors. Many low-priced stocks and previously overlooked companies have gained ground due to the influx of new capital that aromas to value investing. Given the Christmas-like spirit on Wall Street, traders and investors should take the time to study up and determine if there are companies in their portfolios that are good value buys. In the minds of many market-watchers, this is a perfect opportunity to pick up steady earners at discounted prices. Santa is sure to be pleased with the positive vibes surrounding the markets. But as with any holiday celebration, one shouldn’t overindulge. As the cheer and good spirit abates in the New Year, investors would be wise to circle back and make sure the choices they made were the right ones. With luck, there will be much to be excited about over the long haul.