The Republican victory in the Senate will play a major part in boosting U.S. equities until April, forecasts a leading global analyst at one of the world’s largest independent financial advisory organisations.

Tom Elliott, the International Investment Strategist at deVere Group, which has $10bn under advice and management, comments after the Republican takeover of the Senate.

He notes: “With the U.S. economy already amongst the fastest growing in the developed world, the Republican victory in the mid-term elections will give another reason for investors to buy U.S. equities.

“The Republicans appear to want to focus on pushing through stalled trade deals‎; repealing large parts of the Dodd-Frank banking legislation, which should help ease the problem of weak liquidity in financial markets; and making it easier for U.S. energy companies to gain permits for new activities and acquire export licences.

US Dollars (PD)“This surge in U.S. equities that’s triggered by the Republican victory is likely to exacerbate the usual seasonal boost that Wall Street receives between November and April.”

He continues: “The rest of the world should see spill-over effects. A near-term rally in U.S. markets will support global stock markets‎, and as more business-friendly legislation is passed through congress a more competitive and profitable U.S. will in turn demand more imports from its trading partners.

“We can also expect the U.S. dollar to continue to rally.

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