Wall Street Analyst Warning: This Year's "Santa Claus Rally" May Be Absent as Investors Buy More Downside Protection

By: theblockbeats.news|2025/12/01 12:45:56
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BlockBeats News, December 1st, The "Santa Rally" is usually one of Wall Street's most beloved traditions. After Thanksgiving, the US stock market tends to slowly rise, with reduced volatility. December also often becomes one of the strongest-performing months of the year, but strategists say that this year, the "Santa Claus" may not show up.

Amy Wu Silverman, Derivatives Strategy Head at RBC Capital Markets, said, "I'm not sure if we will see a 'Santa Rally,' but we will certainly encounter another 'pit' of volatility, or a volatility rebound." She pointed out that there has been an increase in bearish sentiment in the options market, with investors buying more downside protection.

Omar Aguilar, CEO and CIO of Schwab Asset Management, also sees similar risks brewing beneath the surface. He said on Monday, "We see a lot of dispersion and differentiation. Post-government shutdown, the arrival of new macro data is uneven, and there are early signs of rotation among industry leaders." (Golden Ten)

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