If you, like me, follow NORAD’s delightful “Santa Tracker” each year, you are aware that the jolly old saint has now circled the globe and he and his reindeer are enjoying a well-deserved rest back at the North Pole.
But for traders, Santa has one more stop to make…in January.
The first major tax reform in 31 years is now in the books, and the markets have even more giddiness heading into the Christmas holiday than usual. Any attempt to “sell the news” of the tax reform have been met with buying and no significant sell-off has been seen.
I was on Fox Business Network’s Varney & Co. show last week and was asked by host Stuart Varney whether I thought the president signing the tax bill into law on the 24th of December was a “sell the news moment”.
I responded that with a lowered tax regime coming on January 1, my belief is that people and institutions will defer profit taking at the end of December into the New Year. While I believe that we could get a very small “sell the news” effect, I believe that this bigger “defer profits into the New Year” thought will be a stronger driver.