Christmas Rally then New Year Correction??

Hi all,

Hope you all have had a great Christmas.

There has been a spike in the lead up to Christmas across most of the major LICs and they are trading at near 52week highs. For those in the game long enough, is there typically a correction or fall in these prices heading into the new year?

Im learning and there is no crystal ball and Ive read that you should continually invest when you can, but if the pattern has been that there is typically a price reduction in the next few weeks then that would be the time to get in. If not, then the bet time is whenever you have the funds.

Thanks in advance

 

Yes the 'Santa Rally' is a well known phenomenon. Might want to check out this....

US markets overvalued? - Early signs of flight to safety (USD) emerging

If US market sneezes Aus will tend to catch a cold.

 

Fingers crossed, hoping to spend some cash mid year, nothing looks great buying to me currently. I'll average in if nothing pops up.

 

I’ve requested a 1 July 2018 correction or worse.

 

The 45 day holding rule to get dividend franking credits also comes into play the last 2 weeks of December for an early February ex-div date for the big LICs and major shares as its interim reporting season.

pinkboy

 

Yep, although it only applies I understand if the total franking credit is less than $5,000. For some preference shares it's 90 days. Both exclude the day of disposal.