Santa Rally Fails, But Solid Gains Still Possible for Stocks in 2023 Despite Early Pullback
-
A failed Santa Claus rally ended the prospect of a "January Trifecta" for stock market gains in 2023.
-
But stocks rallied strongly in the last 2 months of 2022, so a pullback now is reasonable.
-
The market may trade sideways for a few weeks or the whole first quarter due to seasonality.
-
But the economy remains strong, with low unemployment and continued job gains.
-
If a recession is avoided, stocks could still gain in the low double digits in 2024.