Mutual Fund Distributions Could Trigger Seasonal Market Dip Before Possible Santa Rally
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Mutual fund distributions typically cause a market dip in early December before the Santa Claus rally.
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The market is currently overbought and could see a correction with added selling pressure from distributions.
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A correction would be healthy to bring buyers back and provide a better risk/reward for increasing exposure.
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While uncertain, analysts are optimistic about avoiding recession and earnings supporting valuations in 2023.
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With the market anticipating a Santa Claus rally, it's important to remember that nothing is guaranteed and to manage risk.