November was a clear break from previous months. Equities delivered strong returns while bonds delivered positive returns for the first time in six months. Geopolitical worries have abated and while there is still a possibility that the situation in the Middle East could escalate, there does not appear to be any market implications if this proves to be the case.
The US economy continued to show signs of resilience while the rest of the world displayed signs of economic slowdown.
Weaker than expected inflation numbers have pushed bond yields lower and there are strong indications that inflation has peaked in various regions. This has led market participants to believe that central banks are going to cut rates in 2024. However, central bankers are maintaining a more cautious approach, which appears to signal higher interest rates for longer.
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