Markets

Independence Day rally

By Allan Roth

July 3, 2012 / 2:12 PM EDT / MoneyWatch

(MoneyWatch) As the red, white, and blue of Old Glory celebrates it's 236th birthday, Wall Street was in a generous mood by giving $820 billion in gains. To be more precise, the US stock market rose about 5.0 percent in the six trading days leading up to independence day. This is measured by the broadest US stock index, the Wilshire 5000.

While $820 billion isn't bad, stocks gained about $910 billion in the final days before last year's independence day.

Is it a coincidence that the last two years have had a strong Independence day rally? Of course it is. But if it happens next year, expect the independence day rally to be in main stream media like the Santa Clause rally or the January barometer.

In the mean time, enjoy the good feeling that comes with a stock market rally and have a great independence day!

Allan Roth

Allan S. Roth is the founder of Wealth Logic, an hourly based financial planning and investment advisory firm that advises clients with portfolios ranging from $10,000 to over $50 million. The author of How a Second Grader Beats Wall Street, Roth teaches investments and behavioral finance at the University of Denver and is a frequent speaker. He is required by law to note that his columns are not meant as specific investment advice, since any advice of that sort would need to take into account such things as each reader's willingness and need to take risk. His columns will specifically avoid the foolishness of predicting the next hot stock or what the stock market will do next month.

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