Another “hot” September around the corner?
With the EU summit dominating headlines this week, it is interesting to take a look in the history of financial markets. Looking back, it appears that the prevalence of crisis events is peculiarly higher towards the end of summer and the beginning of September. (Could it be that policy makers wait until they get back from vacation to deal with the problems?). The same seems to apply to election years, if one considers Mexico in 1982, America in 2008 and Greece in 2009, to name a few. (At the end of the day, it is a good incentive for politicians to hide accumulative problems that lead to crisis until they get a fresh mandate). With elections already having taken place in Russia, France and Greece, with upcoming elections in America and China (its version of elections) and with Europe moving towards breaking apart rather than breaking through, it looks like there are choppy waters ahead.