Posted on Jan 21, 2021 at 12:02 amUpdated Jan 21, 2021, 6:07 PM
Joe Biden will he seduce the markets? The 46th President of the United States inherited a country in the grip of divisions, mired in an unprecedented health crisis and an unemployment rate at the highest since 2013. Even if Wall Street is evolving to its all-time highs, with new all-time highs set on Wednesday, market professionals, including the most bullish ones, are starting to feel dizzy over US stock valuations.
Judging from the past, the new president could benefit from a grace period. “Generally, the first steps of a new administration are marked by a reformist impetus, a rather promising context for the markets”, recalls Christian Parisot, Aurel BGC. Since 1948, whether the winner is Democrat or Republican, markets have climbed an average of 3% for six months after the presidential election.