'Tis the season not to see declines

A STRONG jobs report on Friday lifted the major stock indices within a hair's breadth of record highs last week, and now US Federal Reserve chairman Ben Bernanke is the only potential spoiler to the stock market's best year since 1997.

While pundits warn of more budget scares early next year, the latest bull run has too much momentum and seasonal advantages to bet against in the short term. It will soon be time for fund managers to begin "window dressing" end-of-year statements by loading up on this year's winners, and for workers to allocate retirement investments for 2014.

"The closer we get to December, the louder history sings 'Tis the season not to see declines'," said Sam Stovall, strategist for Standard & Poor's Capital IQ, in a note to clients. "So, while history says a correction is due, it doesn't say whether it will be on time. As a result, investors will likely get to enjoy their holiday festivities before fretting over the post-New Year fireworks."