Finance
Stock market’s record run sets stage for December gains, pros say
The market’s record year may have more room to run, with sentiment buoyed by recent outperformance and historical trends.
Stocks have notched all-time highs following President-elect Donald Trump’s victory earlier this month, as Wall Street remains optimistic over the incoming administration’s economic agenda despite looming tariff risks.
“Tariff threats may trigger near-term market volatility, but the fundamental backdrop remains supportive,” UBS Global Wealth Management’s Mark Haefele wrote in a note to clients on Wednesday.
This year, the S&P 500 (^GSPC) has notched more than 50 all-time closing highs, while the Dow Jones Industrial Average (^DJI) and Nasdaq 100 (^NDX) are not far behind.
Looking ahead, strategists suggest the market’s bull year could end on a positive note.
“At this point, you can’t deny that everything looks positive,” Michele Schneider, chief strategist for MargetGuage.com told me on Yahoo Finance’s Morning Brief, adding that investors should “stay with the momentum and stay with the trend.”
Using history as a guide, the odds are for that trend to be on the upswing. According to CFRA’s Sam Stovall, December is the S&P 500’s most consistent month of gains, with the greatest frequency of advances (batting average). It also has the lowest volatility — nearly 40% below the average for the other months since World War II.
During the month, the S&P MidCap 400 and SmallCap 600 indexes have outperformed other areas of the market, followed closely by the Utilities (XLU), Industrials (XLI), Materials (XLB), and Financials (XLF) sectors.
What sets this year apart is the election adding to the bullish sentiment. December historically ranks as the S&P 500’s second-best month of the year during election years, with an average return of 1.3% since 1950, according to analysis from Carson Group’s Ryan Detrick.
His analysis also found that strong year-to-date performance often increases the chances that investors will chase the market into year-end. Of the past 10 times the S&P entered December up more than 20%, the month of December recorded an average gain of 2.4%.
Looking further ahead, the potential for a Santa Claus rally — which is when stocks climb higher in the final five trading days of the year plus the first two trading days of the New Year — could further boost returns.
Stock Trader’s Almanac editor in chief Jeff Hirsch, who explains that Thanksgiving kicks off a run of solid bullish seasonal patterns for the market, recently wrote that he has “combined these seasonal occurrences into a single trade: Buy the Tuesday before Thanksgiving and hold until the 2nd trading day of the New Year. Since 1950, S&P 500 has been up 79.73% of the time from the Tuesday before Thanksgiving to the 2nd trading day of the year with an average gain of 2.58%.”
Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
-
Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
-
Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
-
Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
-
Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
-
Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
-
Nebraska25 seconds agoWhere Are Nebraska Fan’s Heads – CarrikerChronicles.com
-
Nevada6 minutes agoBillionaire Tax Refugees Flock to Ritzy Nevada Lake Town
-
New Hampshire12 minutes agoNew Hampshire mothers’ labor force participation rate – Valley News
-
New Jersey18 minutes agoNJ ex-fireman ‘ready for war’ when he launched into violent rampage triggered by breakup: prosecutors
-
New Mexico24 minutes agoPhoebe Bridgers Debuts New Music at First Show in Three Years
-
North Carolina30 minutes agoNorth Carolina man found dead after falling overboard in East TN lake: TWRA
-
North Dakota36 minutes agoFederal judge agrees to toss $28M judgment related to Dakota Access Pipeline protests
-
Ohio42 minutes ago8th Annual Trumbull County Special Olympics Invitational held in Girard