The holidays are one of my favorite times of the year. First, they give me an opportunity to spend quality time with my family and friends.Second, the holidays typically bring a rejuvenating excitement to the stock market.
Investors typically perk up during this time for a number of reasons. The most basic is the fact that holiday cheer is contagious. From Thanksgiving on, the warmth of the season spreads and increases. Whether you celebrate Christmas, Hanukkah, Kwanzaa or any other holiday taking place this time of year, it’s difficult not to be in good spirits.
The holidays also mark a spike in consumer spending, and retailers pull out all the stops with promotions, specials and sales to make sure they pull in as much money as consumers are willing to spend — and then some. So, it’s not a surprise that sectors like the retail industry receive a nice boost during the holidays.
Also, working in the markets’ favor this time of the year is investors’ desire to end the year with a bang. Now is the time when many are rearranging their portfolio and hatching plans that will allow investors to finish off the year with big returns. Smart investors are stocking up on stocks at bargain prices. Others are planning trades that will help with tax breaks.
The bottom line is that the holiday season is a significant part of the year-end surge. Investor activity continues to expand daily and will continue to do so through the end of the year.
Even with the poor mix of global news and economic concerns weighing down the markets, the markets have made big moves since Black Friday — the official start of the holiday shopping season. On that day, the Dow closed at 11,231.78. Even after today’s sharp drop, it’s managing to hover around 12,160 mark, which is about 928 points better in a little less than month. Considering that the many negative headlines combating the holiday spike, I consider this a solid jump for the holiday season. And I expect the positive trend to become more consistent as year-end excitement grows.
Many sectors across the market improve during the holiday season. Some more than others. Here’s a look at three sectors really impacted and the latest details about a couple of big-name stocks in each.