November saw very strong US equity markets, weakening in
non-US and Emerging market equities, strength in natural resource stocks and
commodities, a rout in the world’s bond markets and a strengthening dollar.
All US equity markets started off weak in November, then
changed direction and went up viciously until the last few days of the
month.
Emerging markets fell hard both prior to and after then
again after the US election bounce.
World real estate markets have suffered on fears of interest
rate increases in the US. Since the US election, markets have stabilized
somewhat.
Natural Resource companies rose since the election. Steel,
copper and other industrial metals and mining stocks did particularly well.
Gold and silver lagged on USD strength.
Commodities sold off on higher interest rates and fears of
OPEC not coming to an agreement. As expectations of the OPEC came to full the
index rebounded and settled only slightly lower for the month.
US bonds swooned after the election as an interest rate hike
during the December Fed meeting became an almost certainty. The job reports in
the US are on streak better than any time since the 1970s.
US Inflation indexed bonds also fell during November. The
chart looks a little bit better, however, as some strong trading ended the
month.
Non-US bonds also suffered after the US elections, but have
traded flat ever since.
The USD did well versus other currencies in November. Again,
the big news is an almost guaranteed interest rate hike in December.
In conclusion, November was great month for US equities –
especially certain natural resource companies and interest rate sensitive
sectors like financials. There was no participation in the bullishness from non-US developed
markets or emerging markets. Bonds and real estate suffered. The USD
strengthened significantly.
