As the holiday season approaches, the Santa Claus rally is historically successful, occurring 80% of the time since 1950. This phenomenon typically drives buying pressure in stocks, making it a potentially profitable time for investors to capitalize on. Consider diversifying portfolios to mitigate risks during this period.

Holiday bonuses and reduced tax selling contribute to a “rising tide lifts all boats” market during the Santa Claus rally. Investors can strategically pick sectors that outperform significantly to maximize end-of-year returns. Deploying capital wisely and having a thesis can lead to big gains during this three-week window.

For those considering retirement, answering three quick questions can reveal the possibility of retiring earlier than expected. Reworking portfolios based on these insights can lead to a shift from accumulating to distributing assets. Take a few minutes to learn more about optimizing retirement plans for a potentially early retirement.

Read more at Yahoo Finance: Santa Claus Rally Could Be Very Profitable for Investors Who Do This