Waiting for Santa

Since the dark days of 2009, the S&P500 (the most prominent and reliable stock index in the US) has risen by almost 500 pct. It has recently breached historic heights a number of times, having grown by almost 25 pct since the beginning of the year. In recent weeks, despite slightly weaker US GDP growth in Q3, it was given a further boost by the easing of US-China tensions and a mooted agreement to limit the scale of the ongoing trade war. At the same time, the continuing positive consumer sentiment has alleviated fears of a recession in the US. The buoyancy of the country’s economy and stock exchanges has been encouraging investors outside America to buy, which bodes well for the last few weeks of the year and the prospect of another so-called ‘Santa Claus rally’. Despite the weakening economic data, European indices such as the DAX have also been positive about the last few weeks, despite the stagnation in Germany, the largest economy in the EU and economists&rsq