28 November 2016

What the US election and Trump mean for Wall Street

With the US Presidential election over, the focus of investors naturally turns toward the outlook for stocks. In the US, debate about a so-called “Presidential election cycle” has raged for years. The theory posits that Wall Street tends to do better in Presidential pre-election and election years, and worst in the first post-election year. This is based on the view that Presidents tend to pump up the economy to ensure their re-election (or that of their party’s new candidate) and then re-apply the brakes in the year after winning office.

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