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Everyone knows about the Santa rally effect, and it’s particularly pronounced in a bull market. According to Bank of America, the November-to-January period is the strongest three-month period of the year for S&P 500 returns, and even more so when August-to-October is above-average, which it was this year with a 4.8% gain.
But the market isn’t showing a lot of festive cheer, particularly if you look at the bottom 495 stocks of the S&P 500 and small-caps. The S&P 500 equal weight index XX:SP500EW is down about 1% from its highs,…
