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Santa Claus Rally? Fast Money Pros Expect a Merry Christmas

Is there a “Santa Claus rally” in store for investors this winter?

Over the past 25 years, the S&P has experienced an average 5 percent surge in stock prices from November to January.

The outlook this year looks good, “Fast Money” experts said Friday.

“You have about half of all actively managed mutual funds trailing the benchmark by at least 2.5 percent,” said Josh Brown of Fusion Analytics.

“What that lends itself to is a little bit more risk-taking, more aggressive trade,” he added. “You tend to see these guys reach for high beta, smaller capitalization stocks that they can actually have an effect on.”

Hedge funds, Brown noted, have not done well as a group this year either.

“So, you combine the two and you can definitely see the ‘Race for the Roses’ coming into the end of the year.”

Investment pro Steve Grasso concurred.

(Related: S&P Rally Ahead – 10% or More by Year-End)

Last year was up 7 percent. A couple years back you were up 10 percent,” he said. “Even on the down years, you’re only down 2 percent.

Grasso said the risk-versus-reward made the move worth it.

“I would be placing money … into that high beta chase,” he said.

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Trader disclosure: On November 11, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karabell is long AAPL; Karabell is long MS; Karabell is long IBM; Karabell is long CAT; Grasso owns AA; Grasso owns AKS; Grasso owns ASTM; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns KEG; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU

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