As explained in the 2014 edition of the Almanac, the market has a tendency to be strong on the FTD of a month. And this effect has been even more pronounced in recent years.
Since 1984, the FTSE 100 Index has fallen on average 0.01% on the December FTD – it is the only month of the year with a negative average return on the FTD.
Since 2000, the performance has been a little stronger on the December FTD, but it is still one of the weakest month FTDs in the year.
The following chart shows the returns for every December FTD since 1984.