Part 2: Once in a Decade Opportunity to Diversify Away From the “Magnificent Seven”
Markets Rally in November.
Amid increasing hopes that the Fed is done raising rates, softer inflation data, lower yields, and better than expected Q3 earnings, equities were up in November as all three major US stock market indices snapped a three-month losing streak. The Nasdaq Composite was up 10.8% while the S&P 500 gained 9.1%, both posting their best month since July 2022. The Dow Jones Industrial Average also increased 9.2%, notching its best month since October 2022. US value (+9.6%) was among the best performers, followed by US large-caps (+9.1%) and US growth (+8.7%). Bonds were also up as investment grade corporates rose 7.6%, municipal bonds gained 5.7%, and high yield credits increased 4.9%. Commodities produced mixed returns as silver (+10.3%) and gold (+2.5%) were up while crude oil (-6.5%) and broad-based commodities were down (-2.4%).