Financial Education

The French election didn’t deliver the deathblow to the European integration process after all, which means that financial market exuberance can be expected to hold up for a while.

The British equity market has gained 20% since the referendum on 24th June resulted in favour of Brexit. The S&P 500 is up 9% since Donald Trump was elected President of the United States.

After observing that every new political twist and turn in 2016 fed into a gradual drift towards fiscal interventionism and prompted central banks to reaffirm their accommodative monetary policies, the financial markets have since been having a field day with what is clearly the strongest cyclical recovery since the end of the Great Recession.

As we indicated last month , the global business cycle gradually recovered in the course of the year from the low it hit in the first quarter of 2016, before getting a further, undeniable boost in November from Donald Trump’s unexpected win at the polls.