BUFFALO N.Y. (WIVB) – More investors are smiling as we head to the end of 2014. Stock prices are back near all-time highs. There’s a good possibility they could go higher, but the next few weeks will tell.
Oil prices have been falling throughout the year. They were cut almost in half, and after gas prices fell even lower last week, the stock market hit a slippery slope.
Over the past few days gas prices stabilized and now the stock market is swinging back up. Those factors combined with what investors call the “Santa Claus rally” is giving investors an early Christmas present. Richard Schroeder, a financial analyst, says the next few weeks will reveal the directions in which stocks will head.
“What’s happened the last few days, we’ve had an exaggerated rally that traditionally comes in December, it’s called the Santa Claus rally,” says Schroerder. “Usually at the end of the year people finish selling losing stocks because they get that done because they want to take their tax losses. Then things start going because people get excited about the coming New Year.”
What investors are watching for is a continuing rally through the end of the year. If the rally continues, good things could be in the works for early 2015.