Here Is Why the Final Week of the Year Is Usually Volatile for Stocks

The final week of the year brings some volatility to the stock market.
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The final week of the year brings some volatility to the stock market. Steve Blitz, an economist and Real Money contributor, said the volatility comes from light trading volume and the pressure for financial institutions to finalize transactions and close out their balance sheets before the end of the year. These trends are especially important as the Dow Jones Industrial Average flirts with the symbolic level of 20,000. Though Blitz cautioned that reaching a psychologically important level like 20,000 may signal to some investors that the market is stretched too far.