Stocks Get Cheap on Christmas Eve

The typical United States stock lost approximately 20% of its value in December 2018. Technically, we have to go back to the Great Depression to find another example of a December in which stock prices have declined by such a substantial amount, but on an annual basis, we are looking at a 10% or so decline, which is something that U.S. Stocks have done about 4-5 times out of every 20 years since the Civil War.

I wasn’t planning on writing about investments during the heart of the Christmas season, but I am reminded of a client I once represented at trial who had to call and make arrangements for neighbors to take care of the farm during the week-long trial, saying that “the cows don’t know it’s a trial week.” So, too, seems to be the case with the sequence of this year’s returns, with no real December event … Read the rest of this article!