After two years of an expensive and divisive presidential election we have emerged with a “Status Quo” government. With President Obama remaining as president, the Congress is split with a Democratic‐controlled Senate and a Republican‐controlled House of Representatives. So what does this mean for the economy and the markets going forward?

The first issue on everyone’s agenda is the Fiscal Cliff. With a divided political landscape in Washington, politicians may use a brinkmanship negotiating style to leverage their position. This …