In sum, November saw credit and rate markets taking a hit, while developed equity markets led the gains. "Analysts have been criticized for suggesting beforehand that a Trump victory would instigate a selloff in assets but the reality is that of the 39 global assets we cover (excluding currencies) only 11 are up in November in dollar terms (12 in local currency) with most being U.S. assets."It wasn't bad news for all emerging markets, however. Russia's benchmark Micex index of equities gained 4 percent in dollar terms, underscoring expectations of a thawing of tensions between Washington and Moscow next year.
Taking stock: credit, particularly U.S. high yield, has had a solid year thus far while November losses have crimped year-to-date gains in developed rate markets. Elsewhere, there are a flurry of interesting local stories that dominate asset returns this year, including the ongoing saga of European banks, the gilt market's struggle to recover from its October maelstrom, and the roller coaster in Brazil's Ibovespa index.
The rationale behind November's memorable, market-moving month — investors are positioning for a game-changing shift in U.S. fiscal and monetary policies — is largely backed by Wall Street strategists. A bevy of analysts this week, from Goldman Sachs Group Inc, JPMorgan Chase & Co, and Societe Generale SA, have upgraded their index forecasts for the S&P 500 over the next two years, citing the prospect of tax reform, regulatory relief and higher government spending, while downgrading their outlook for emerging markets.
This article was provided by Bloomberg News.