Market Quote: November Rally, U.S. Election
Author: The editor's desk
December 1, 2023
Members of AGF’s Investment Management Team weigh in on the week that was in global financial markets.
November came to a roaring close this week, capping off one of the best months in global equity markets in the past three years and one of the top 15 months for the S&P 500 Index in half a century. The rally has been fuelled by a dramatic turn in sentiment in recent weeks that comes on the heels of a significant drawdown in equities this summer and earlier this fall.
Going forward, equity markets may be further supported by seasonal tailwinds that are historically prevalent through December and January, even irrespective of the so-called “Santa Claus rally” that tends to be more pronounced in up years for markets.
In this environment, we are paying close attention to the improving breadth of market returns and slight rotations in both sector and factor leadership that have been happening of late. It would not be surprising if these trends continued on the back of a sustained rally through the end of the year.
A close election is good for ratings and subscriptions, so the press naturally wants a photo-finish. This explains the breathless coverage of the endorsement of Nikki Haley by the conservative billionaire Charles Koch and his Americans for Prosperity Action.
But the suspense is simply to see who will finish second to Donald Trump, who’s far ahead in Iowa, leads in New Hampshire and has overwhelming support from Republican voters in virtually every other state. Nothing — not more criminal charges, not verbal gaffes, nothing — seems sufficient to take down Trump even though Haley now has some momentum.
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The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds, or investment strategies.
Commentary and data sourced from Bloomberg, Reuters and other news sources unless otherwise noted. The commentaries contained herein are provided as a general source of information based on information available as of November 30, 2023 and are not intended to be comprehensive investment advice applicable to the circumstances of the individual. Every effort has been made to ensure accuracy in these commentaries at the time of publication, however, accuracy cannot be guaranteed. Market conditions may change and AGF Investments accepts no responsibility for individual investment decisions arising from the use or reliance on the information contained here.
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