The election in the USA is over and despite all the polls saying otherwise, Trump has clearly won. The poor economic situation and the high inflation of the last two years have forced Americans from all ethnic groups and classes to change direction. The team that Donald Trump is now gathering around him is extremely questionable; in any case, he is only looking for YES-sayers who will support his course without objection. Since the Republicans also have a majority in the Senate and the House of Representatives, we can only hope that some representatives are aware of their task and obligation to the people and thus put a stop to it. The new administration could also cause global political trouble on the issue of the Ukraine war and the Israel problem.
The stock markets reacted positively to the election and started to soar to new heights. This is understandable, as change always plays a decisive role in the markets and brings movement to the prices. Since voters also expect an upturn from the new government, the trading platforms are already pricing this in.
In Europe, the economy is looking even bleaker than in the USA. There is no longer any talk of economic growth, and people are hoping that there will not be a serious recession. The situation in Ukraine is also putting pressure on the European market, and the disagreement among EU members on substantive issues is further weakening confidence. This can be clearly seen in the change in the Euro/USD exchange rate.
We are currently in the strongest quarter of the year and are therefore expecting a good end to the year. We would not be surprised if the indices increased further and reached new highs.
