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Tom Meaglia, ChFC®, AEP®,
CLU®, CRPC®, MSFS
Chartered Financial Consultant
Investment Advisor Representative
Chartered Retirement Planning Counselor
CA Insurance Lic. #0567507
Meaglia Financial Consulting
2105 Foothill Blvd., #B140, La Verne, CA 91750
Toll Free: 800-386-3700
Bus: 909-593-6105
Cell: 818-681-8600
Fax: 909-593-6120
Email: tom@meagliafinancialconsulting.com
Website: www.meagliafinancialconsulting.com
History
Yale Hirsch, the founder of the annual Stock Trader's Almanac, coined the "Santa Claus Rally" in 1972 for the likely market performance during the last five trading days of December and the first two trading days of January (12/ to 1/ this year). But the history of the Santa Claus rally dates to the early 1900s. In 1942, author Sidney B. Wachtel presented the analysis in "The Journal of the Business of the University of Chicago." Wachtel used the Dow Jones Industrial Average (DJIA) to study the effect from 1927 to 1942.
While past performance doesn't guarantee future results, the period has posted higher stock prices about 79% of the time since 1950. The S&P 500 index has averaged a 1.3% gain during this time. When stocks decline during this period, significant market downturns have often followed. For example, in 1999, a 4% decline during the Santa Claus rally period was followed by the Dow's 37.8% slide over the next 33 months, and in 2007, a rally period decline preceded the 2008 financial crisis.
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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
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Meaglia Financial Consulting and LTM Marketing Solutions, LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Marketing Solutions, LLC, an unrelated third party. Articles are not written or produced by the named representative.
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