NEW YORK (TheStreet) -- Don't sell in December and go away!
The S&P 500
"Since 1945 whenever the S&P 500 increased by greater than 15% year-to date through November, which is more than twice the average gain, the '500' rose more than 2% in December and advanced in price greater than 70% of the time," says Sam Stovall, Chief Equity Strategist at S&P Capital IQ.
The carry-through momentum is even more encouraging for the bulls from a sector perspective, says Stovall.
"Whenever a sector recorded a YTD-November price gain of 15% or more, it went on to post an average price advance in December of as little as 1.3% for Energy to as much as 5.2% for Consumer Staples," says Stovall. "What's more, all 10 sectors rose in price at least 67% of the time in December following strong YTD performances and some, such as Consumer Discretionary, Consumer Staples and Utilities, did even better, increasing in price 90%-100% of the time."
Finally, if the good times continue, don't unload your stocks at the end of December either. When stocks are up over 20% or more in a year, says Stovall, they are up an average of 10% the following year vs. around 8% for all years.
"Good years tend to follow great years," says Stovall.
That's great news indeed for the bulls this holiday season.
-- Written by Gregg Greenberg in New York