We see and hear lots of investors panicking now after Wednesday’s post-Fed market sell-off. Is the year-end Santa rally called off? History suggests that we are still within a ‘normal’ pattern for this time of that a year-end rally remains a good possibility. Wednesday’s sell-off however should be a serious wakeup call to complacent investors that have forgotten how normally-functioning markets can have volatility spikes. This is likely also a good precursor of what to expect more of in 2025, which we deep the year of the trader.
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