Will Eye-Popping 2023 Bonuses For Wall Street Managers Alter The Santa Rally's Course?
Portfolio Pulse from Piero Cingari
The article discusses the potential impact of Wall Street managers' bonuses on the traditional 'Santa Rally' in the stock market. It highlights the remarkable recovery of tech stocks in 2023, with the Invesco QQQ Trust (QQQ) reaching all-time highs and the SPDR S&P 500 ETF (SPY) gaining 25% year-to-date. Wall Street bonuses, which are tied to fund performance, could surpass 2021's record levels. The article suggests that despite the significant gains this year, the history of risk-taking by portfolio managers may indicate that the Santa Rally could continue without them selling off to secure profits.
December 19, 2023 | 8:53 pm
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POSITIVE IMPACT
The Invesco QQQ Trust reached unprecedented all-time highs, with a 54% gain year-to-date, indicating strong performance in tech stocks.
Given the significant gains and historical trends of risk-taking by portfolio managers, QQQ could see continued positive momentum in the short term, especially if the Santa Rally persists as suggested by recent history.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The SPDR S&P 500 ETF has seen a 25% gain this year, reflecting the broader market's strong performance.
SPY's performance is indicative of the overall market strength. The article suggests that the Santa Rally may not be dampened by portfolio managers securing profits, which could mean continued short-term gains for SPY.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80