Will Stocks Follow Other Recent Decembers And Move Higher [AUDIO]
The stock market sails into December on the strength of a strong finish on the last day of November. And the recent past indicates this month has been good for stocks.
The Dow gained 490 points Wednesday for its best one-day showing since March of '09. A string of positive U.S. economic news also propelled the market higher. An index measuring manufacturing in the Midwest
surged to a seven-month high; private company hiring jumped in November to the highest level this year, according to payroll company ADP; and the number of contracts to buy homes jumped in October to the highest level in a year.
Since 1990, December stocks have finished the month 81 percent higher. Chris Cordaro of Regent Atlantic Capital in Morristown says there's reason to believe this December will follow the trend. he says, "if things get cleared up in Europe and there is a clear solution, then I think we are in for a good December". Cordaro says retail sales in the U-S could help us out. Banks stocks soared as fears about an imminent disaster in the European financial system ebbed.
Cordaro cautions some investors dump stocks this month in what he calls, "tax loss opportunity", and that could serve as a downward tug on the market's attempt to move higher.