Global Markets Update: November Review
In the world of finance, November was a month of mixed results across global markets. Let’s dive into the details of what happened and how different asset classes performed.
Winners and Losers of November:
- US Stocks and Real Estate Investment Trusts: Led the winners with solid gains, bouncing back from previous losses.
- Commodities and Emerging Markets Stocks: Suffered the biggest losses in November.
US Equities Surge:
US equities saw a remarkable 6.7% surge in November, making it the strongest performer among major asset classes for the month. Year-to-date, American shares are up nearly 28%, outperforming other asset classes in 2024.
Bond Market Performance:
- US Bonds: Recovered some losses from October, rallying 1.1% in November.
- US Junk Bonds: Continued to shine, rising 1.7% last month and surpassing October’s performance.
Emerging Markets Stocks:
November’s biggest loser was emerging markets stocks, which shed 2.1%. This decline marks the second consecutive monthly loss after eight months of gains.
Global Market Index (GMI) Rebound:
The Global Market Index (GMI) rebounded sharply in November, jumping 4.2% and reversing October’s slide. GMI has rallied in nine out of 11 months in 2024, currently up by a strong 17.6% year-to-date. GMI serves as an unmanaged benchmark, holding all major asset classes (except cash) in market-value weights via ETFs, making it a competitive benchmark for multi-asset-class portfolios.
Performance Comparison:
When looking at the one-year window, GMI’s performance remains moderate compared to US stocks (VTI) and US bonds (BND).
Analysis and Conclusion:
In summary, November was a month of ups and downs in the global financial markets. While US equities and junk bonds shined, emerging markets stocks faced challenges. The rebound in the Global Market Index reflects a positive trend, but performance remains mixed compared to US stocks and bonds.
Understanding these market dynamics is crucial for investors to make informed decisions about their portfolios and financial future. Keeping a close eye on asset class performances and global market trends can help individuals navigate the ever-changing landscape of finance and maximize their investment potential. Stay informed, stay proactive, and stay ahead in the world of finance.