US equity bounce likely to be higher than consensus

PSigma American Growth manager James Abate says any bounce in US equity markets is likely to be high...

PSigma American Growth manager James Abate says any bounce in US equity markets is likely to be higher than the 8%-12% often quoted as consensus a year after Barack Obama has been in power. Overall, stocks have produced 14.9% average annual growth under Democrats and 8% under Republicans, although bonds have outperformed under the latter. However, Abate believes this year's bounce could be higher still. As historically, the first year of a Democrat presidential term has seen higher stock market returns than under a Republican, the manager told delegates at the Investment Week US Investm...