With the 1-year treasury yield now above 4.5% many investors have been shifting excess cash out of the bank. The average interest rate on a bank savings account is currently just 0.268%.
The S&P 500 is down nearly 20% in 2022…its worst annual performance since 2008. That bodes well for next year since it is rare to see 2 years in a row of S&P 500 declines. Of 21 instances of annual declines, 18 saw stocks rise the following year.
Investors hope that a “Santa Clause Rally” will help boost the market as we close out this year. US stocks have risen during the last five trading days of December and first two days of January 75% of the time.
The price of oil may not rise rapidly as China reopens from quarantine. This is because their hardest hit industry and construction sectors represent half of all oil demand. In contrast transportation is responsible for 70% of oil demand in the US.
WSJ- "Six Ways to Protect Your Money in 2023"
The Irrelevant Investor- "A Very Tom Lee Christmas"
Barrons- "Wall St Week Ahead Investors Look for 'Santa Rally' After Grim Year for U.S. Stocks"
WSJ- "China Won't Spoil the Fed's Soft Landing"
Economic Calendar
Monday:
Christmas holiday. None scheduled.
Tuesday:
Trade in goodsadvance report (Nov), S&P Case-Shiller U.S. home price index (SAAR) (Oct), FHFA U.S. home price index (SAAR) (Oct)
