Pro Analysis

Strategist Stovall: Strong November won't steal gains from a December Santa rally

A man dressed as Santa Claus walks the floor of the New York Stock Exchange.
Shannon Stapleton | Reuters
A man dressed as Santa Claus walks the floor of the New York Stock Exchange.

Christmas came early for stock investors this year as the market surged following the election of Donald Trump.

But a big November gain doesn't mean December can't be a strong month too, a new report shows.

"The obvious question many investors are now asking is, 'Will November's strength steal from a possible end-of-year rally, especially when it comes to small-cap stocks?' History says no," CFRA's chief investment strategist Sam Stovall wrote in a note to clients Monday.

Since the U.S. presidential election on Nov. 8, U.S. stocks are up across the board, led by the small-cap Russell 2000 index, which is up 12 percent.

Other benchmarks such as the Dow Jones transportation average and S&P MidCap 400 index have posted gains north of 8 percent since the election on hopes for pro-growth economic measures under President-elect Donald Trump.