Brew Markets Here Comes the Santa Claus Rally? & The Year in Brand Backlash
Dec 22, 2025
Discover the intriguing history of the "Santa Claus Rally" and whether we're in for one this year. Dive into brand controversies of 2025, from American Eagle's ad backlash to Cracker Barrel's rebranding woes. Explore the impact of Southwest's new baggage fees and assigned seating on its brand identity. Plus, get the scoop on Paramount's bold $40 billion bid for Warner Bros and Janus Henderson going private amid activist interest. It's a lively discussion on market trends and brand resilience!
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What The Santa Claus Rally Means
- The Santa Claus rally is a historical tendency for stocks to rise in the last five trading days of December and first two of January.
- It occurred about 79% of years since 1950, averaging a 1.3% gain, but is not guaranteed during high uncertainty.
Why Year-End Markets Often Rise
- Several factors may drive the year-end lift: holiday optimism, light trading volumes, year-end portfolio moves, and psychology.
- Expectation itself can become self-fulfilling as investors buy because they anticipate the rally.
Test Revenue Moves Against Customer Attrition
- Watch whether new revenue streams offset customer attrition when brands change core policies or pricing.
- Measure net promoter score and actual sales impact before assuming backlash will halve returns.