Stocks have remained buoyant despite strong inflation.
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- Investors are optimistic stocks will stay strong in coming weeks, as the traditional “Santa rally” takes shape.
- This year, equities could be boosted by buybacks, low bond yields, a growing economy and bullish retail traders.
- Stocks have been buoyant despite inflation at a 31-year high and central banks’ plans to cut support for the economy.
Inflation is at its strongest in 31 years, US stocks are at record highs, and coronavirus cases are soaring in Europe.
But that hasn’t stopped investors getting excited about a possible “Santa rally” that many expect to push stocks to new heights this winter.
The end of the year has historically been a gift to US stock market investors. The S&P 500 has risen on average 1.1% in November and 2.3% in December since 1936, according to Bank of America, as traders try to get ahead of what was traditionally a…
