From a technical point of view, the concept of a “year-end rally” is a myth. At least, this is what empirical evidence is telling us. In the past 10 years, the S&P 500, for example, posted a December performance, on average, of 1.12%, making December only the 5th-best month of the year (Fig.1). Over the entire period – from 2006 to 2015 – there was not a single year, in which December was the best performing month.
After a long campaign, the results of the US presidential election are in: Donald Trump will be the next President of the United States. In addition, the Republican Party has retained its majority in Congress. What are the repercussions for the global economy and the financial markets?