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December historically delivers. Small-cap stocks average 5.1% gains vs 1.0% for large-caps since 1979. 

Tax-loss selling creates bargains mid-month. 

Santa Claus rally hits the last 5 trading days plus first 2 of January - up 77% of the time. Energy and materials get dumped for tax purposes, then bounce. 

REITs shine as institutions window-dress. 

Hunt the unloved sectors getting tax-sold. Position by December 15th before the rally starts.

TLDR:

  • Small-caps historically outperform large-caps 5x in December
  • Tax-loss selling creates mid-month buying opportunities
  • Santa Claus rally wins 77% of time
  • Energy and materials bounce after tax dumping
  • Position in unloved sectors by December 15th

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Disclaimer:

Disclaimer: These are my thoughts and ideas only, and not financial advice. This content is for informational and educational purposes only and does not constitute financial, investment, or trading advice. All opinions expressed are based on publicly available data believed to be reliable but are not guaranteed for accuracy or completeness. Investing and trading involve risk, including the possible loss of principal. Always perform your own due diligence and consult with a qualified financial advisor before making investment decisions. Past performance is not indicative of future results. Paid ads from 3rd parties are clearly identified. You should assume an affiliate payment will be made to us if you click a link or buy a product.

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