Key Benchmarks: Performance and Characteristics as of 11/30/2015
November 2015 Highlights
- Global equities marginally underperformed global fixed income although U.S. equities outperformed all other major asset classes.
- Market participation improved with small caps outperforming large caps and value outperforming growth.
- U.S. dollar strength weighed on ex-U.S. asset class performance, particularly emerging market stocks and bonds.
- Cyclical sectors, led by materials, technology, and industrials, outperformed defensive sectors despite the continued sell-off in commodities and energy. Financials were the best performer for the month.
- Within U.S. fixed income, credit sectors underperformed as spreads widened back out after having narrowed in October. The energy markets continue to weigh on credit sentiment.
- U.S. macroeconomic conditions continue to decline with weakening manufacturing and business sentiment, poor earnings releases from key retailers, and upwardly-revised 3Q GDP driven by a spike in inventories.
- The Fed is expected to raise rates in December although the focus will shift towards the pace of tightening throughout 2016.
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