There’s something about December that seems to charm equity markets into a year-end flourish.

For decades, investors have noted how the final month of the calendar tends to bring tidings of green screens and positive returns, fuelling what has become known as the Santa Claus rally.

But behind the festive metaphor lies a consistent, data-backed pattern.

Over the past four decades, the S&P 500 has gained in December about 74% of the time, with an average monthly return of 1.44% –– second only to November.

This seasonal cheer is echoed across European markets, with some indices showing even stronger performances.

Since its inception in 1987, the EURO STOXX 50, the region’s blue-chip benchmark, has posted an average December gain of 1.87%. That makes the Christmas period the second-best month of the year after November’s 1.95%.

More striking, however, is its winning frequency. December closes in positive territory 71% of the time — higher than any other month.

The best December for the index came in 1999, when it surged 13.68%, while the worst was in 2002, when it fell 10.2%.

Rally gathers steam in late December

Zooming in on country-level indices further reinforces the seasonal trend.

The DAX, Germany’s flagship index, has shown an average December return of 2.18% over the past 40 years, trailing only April’s 2.43%. It finishes the month higher 73% of the time, again tying with April for the best track record.

France’s CAC 40 follows a similar pattern, gaining on average 1.57% in December with a 70% win rate, also ranking it among the top three months.

Spain’s IBEX 35 and Italy’s FTSE MIB are more moderate but still show consistent strength, with December gains of 1.12% and 1.13% respectively.

But the magic of December doesn’t usually kick off at the start of the month. Instead, the real momentum tends to build in the second half.

According to data from Seasonax, the EURO STOXX 50 posts a 2.12% average return from 15 December through year-end, rising 76% of the time.

The DAX performs similarly, gaining 1.87% on average with a 73% win rate, while the CAC 40 shows even stronger second-half returns of 1.95%, ending positive in 79% of cases.

What’s behind the rally? It’s not just Christmas spirit

So what exactly drives this December seasonal phenomenon? Part of the answer lies in fund managers’ behaviour.

Christoph Geyer, an analyst at Seasonax, believes the rally is closely tied to the behaviour of institutional investors. As the year draws to a close, many fund managers make final portfolio adjustments to lock in performance figures that will be reported to clients and shareholders.

This so-called “price maintenance” often leads to increased buying, especially of stocks that have already done well or are poised to benefit from short-term momentum.

This behavioural pattern gains importance in years when indices such as the DAX trade within a sideways range — as has been the case since May this year. A sideways market is one where asset prices fluctuate within a tight range, lacking a clear trend.

According to Geyer, a breakout from this sideways range for the DAX appears increasingly likely as December kicks in.

From mid-November to early January, historical patterns suggest a favourable outcome, with a ratio of 34 positive years versus 12 negative for the German index — and average gains exceeding 6% in the positive years.

While past performance does not guarantee future returns, December’s track record across major global and European indices provides a compelling narrative for investors.

In short, December’s strength is not just about festive optimism. It’s a convergence of seasonal statistics, institutional dynamics, and technical positioning.

Disclaimer: This information does not constitute financial advice, always do your own research to ensure investments are right for your specific circumstances. We are a journalistic website and aim to provide the best guidance from experts. If you rely on the information on this page, then you do so entirely at your own risk.

In fact, the younger generation may be more prepared to retire than their older cohorts. Nearly half of Gen Z workers (aged 24-28) are projected to maintain their current standard of living in retirement, slightly ahead of the 40% projected for baby boomers (aged 61-65) approaching retirement, according to a new study from investment management firm Vanguard. Millennials were also slightly ahead of the older generation (aged 29-44), with 42% on track for retirement. Gen X fell slightly behind at 41% (aged 45-60). 

Vanguard based its findings on data from the 2022 Survey of Consumer Finances, using roughly 2,700 working U.S. households to estimate how each generation was on track for retirement and whether their retirement incomes would be enough to maintain their lifestyle without exceeding their spending needs. 

The financial readiness of Gen Z could come as a shock to older generations who may believe they are “doom spending” or making discretionary purchases, rather than necessary ones they’ll need to reach adult milestones. While soaring inflation, high living costs and stagnant salaries are dragging baby boomers out of retirement, young savers may be taking those headwinds as a financial lesson. 

Automatic payments and DC plans are helping Gen Z save 

Part of the financial preparedness is due to expanded Defined Contribution (DC) plans offered by employers. For younger generations, the plans could make saving easier and more effective through features such as auto-enrollment, automatic escalation, and investing in target-date funds. In addition, a separate Vanguard study found that DC plan participation and eligibility rates are at all-time highs, which could help workers build financial security over time. 

What’s more, the study pointed out that if all workers had access to a DC plan—such as 401(k) 403(b)s, about 6 in 10 Americans would be on track for retirement. More than 100 million Americans have access to these plans, holding more than $12 trillion in assets. 

But access to retirement funds isn’t universal. A separate analysis found 42% [roughly 40 million] of workers do not have access to these plans, with access gaps concentrated in lower-wage and part-time jobs.

However, despite the younger cohort funneling money into their 401(k)s, the future of any further progress depends on their overall financial wellness. Even with their success in saving, many younger generations are grappling with debt repayments—from student loans, auto loans, and mounting credit card debt. 

“Supporting overall financial wellness with effective planning tools is key to helping the next generation achieve lasting retirement security,” said Nicky Zhang, a Vanguard investment strategist and co-author of the research paper.

Baby boomers may hold most of the nation’s wealth but aren’t ready to fully retire

Though Gen Z may be facing debt-repayment struggles, baby boomers, even with holding over half of the nation’s wealth, are not ready to stop the 9-to-5 to retire comfortably. While the wealthiest 30% of boomers are generally on track, others may fall short. 

For example, the median boomer is projected to need to replace about a third of their pre-retirement income through private and employer retirement savings, facing a shortfall of roughly $9,000 (or a quarter of their expenses).  

To cope, boomers may need to consider options like tapping home equity, reducing spending, or working two additional years, the study found. 

Anyone who drives a car understands the sting of having to fill up their tank and pulling into the gas station, only to discover that gas prices have skyrocketed. Paying extra for gas means you have less to spend on other things, which, over time, can really put a crimp in your budget.

Cheap Insurance explored some of the reasons behind major changes in gas prices, and compiled a list of the cheapest gas stations in Las Vegas using data from Gas Buddy.

Gas prices fluctuate based on several factors, including the cost of the key ingredient, crude oil, as well as the available supply and demand for gasoline. If the price of oil rises, a major refinery goes offline, or more drivers are hitting the road, for example, then the cost will increase.

In the first half of 2022, a unique confluence of events led to a surge in gas prices. The increased demand stemming from the COVID-19 pandemic, Russia’s invasion of Ukraine, and a slowdown in oil production all contributed to a national all-time high of $4.93 per gallon on average in June 2022.

Seasons also affect gas prices. Demand tends to drop in winter, but the cost also falls because gas stations switch to a different blend of gasoline that’s optimal for lower temperatures—and has cheaper ingredients.

Location also matters. The South and Midwest tend to have the lowest gas prices, while the West, including Hawai’i, has the highest. Californians, in particular, pay more for gas on average than any other state. That’s because of its high state excise taxes; its isolation from the country’s major pipelines, which causes supply issues; and its requirements that mandate a more environmentally friendly blend of gas that costs more to produce and adds to the price per gallon.

No matter where you live, read on to see if you can get a deal on gas near you.

#1. Sam’s Club

– Address: 2658 E Craig Rd, North Las Vegas, NV

– Price: $3.04

#2. Costco

– Address: 222 S Martin Luther King Blvd, Las Vegas, NV

– Price: $3.09

#3. Sam’s Club

– Address: 8080 W Tropical Pkwy, Las Vegas, NV

– Price: $3.11

#4. Murphy Express

– Address: 6009 West Craig Rd, Las Vegas, NV

– Price: $3.14

#4. Murphy Express (tie)

– Address: 3742 W. Ann Rd, North Las Vegas, NV

– Price: $3.14

#4. Murphy Express (tie)

– Address: 1970 W Craig Rd, North Las Vegas, NV

– Price: $3.14

#4. Murphy Express (tie)

– Address: 6035 Losee Rd, North Las Vegas, NV

– Price: $3.14

#4. Costco (tie)

– Address: 6555 N Decatur Blvd, Las Vegas, NV

– Price: $3.14

#9. ARCO

– Address: 7212 S Jones Blvd, Las Vegas, NV

– Price: $3.15

#10. VP Racing Fuels

– Address: 4747 N Rancho Dr, Las Vegas, NV

– Price: $3.24

This story was produced by CheapInsurance.com and reviewed and distributed by Stacker.