Market Commentary Posted on

November 2015 Market Commentary: Squirrelly Market Behavior

Key Benchmarks: Performance and Characteristics as of 11/30/2015

Source: Bloomberg

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. 

To view full commentary, click here.

By: Benjamin Lavine