Christmas came early this year for investors. Colloquially known as a “Santa Claus rally,” the market experienced an upward bounce in the latter half of November. On the equities side, the S&P 500 and Nasdaq saw their best monthly gains (8.9% and 10.7%) since July 2020. Over on the bonds side, U.S. Treasury yields continued to drop and the bond market had its best monthly gain in nearly 40 years.

When building portfolios, the traditional model is a split of 60% stocks and 40% bonds. But high inflation and rising interest rates have hit bonds hard and recent volatility has pushed markets down. Should investors add more stocks to their portfolios in anticipation of a market comeback? It depends on your goals.