Amazing Chart

This is an amazing chart because it shows how narratives emerge. Enjoy!

The Nasdaq chart since inception shows returns on the last trading day of the year:

From 1971 to 1999 the Nasdaq rose on the last day of the year in what was an amazing 29-year winning streak. The average return over these 29 years for the last day of the year was +0.74%.

But after the dot com crash, this patterns that probably contributed a lot towards the Santa Claus rally narrative, broke down and since 2000 the win rate for the last day of the year is 17.64%, or just 3 wins in 17 years with mean return equal to -0.48%.

That was an amazing chart!

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