Why a “Santa Rally” Could Put Our Favorite Dividends on Sale in ’24

It’s mid-December, and everyone wants to know if stocks—and by extension high-yield closed-end funds (CEFs) —are poised to roar into ’24 in a so-called “Santa Claus rally.” I’ll venture a prediction, but before I do, I should tell you that I come at the whole idea of a Santa Claus rally from a bit of a different angle than most folks in the business media or on Wall Street. I actually dislike Christmas cheer in the markets. Not because I’m a Grinch. Rather, it’s because I think Santa rallies are not a good sign for stocks going forward. Take 2021, a year in which market sentiment whipsawed.… Read more