Historically seen as a profitable month for investors, December might just catch many by surprise with some analysts growing increasingly wary of an overvalued market.
Since 1929, the return on the S&P 500 for December has been about 1.5 percent on average, according to Reuters. For the Dow, the average return has been about 1.3 percent on average from 1910 to 2010.
This frequent year-end surge has come to be known as the "Santa Claus rally." However, Sean Corrigan, chief investment strategist at Diaspason Commodities told CNBC that history might be leading investors astray.
(Read More: Like 2013 gains?Watch out for 2014)
"History tells you what the average was in the past. It doesn't give you any predictive powers about where the distribution is going to be in the future," he told CNBC Monday.
This year has been kind to equity investors with the S&P rallying 26.5 percent and the Dow 22.5 percent. The S&P 500 recorded its first close above 1,800 on Friday and the Dow posted its longest weekly winning streak in nearly three years. With a price-to-earnings ratio of 18.25 for the S&P 500, many are now suggesting U.S equities are overvalued and Corrigan believes it'll be nonsensical for investors to chase them higher.
Michael O'Sullivan, a chief investment officer at Credit Suisse is bullish for stock markets over the long term. He argued to CNBC that "we're in a boom, we're not in a bubble." Nonetheless, he has doubts over the short term too.
"It just smells wrong in the short term to me," he told CNBC Monday.
(Read More: Expect a lackluster 2014 for global equities: HSBC)