MARKET REPORT: November 2016

 

developedmarketsCommentary: U.S. Market Climbs Higher – For the month of November, developed market index returns were mixed. The United States and Canada posted the highest gains of 3.53% and 2.38%, respectively. Europe and Japan recorded the biggest drops.

 

emergingmarketsCommentary: Volatile November for Emerging Markets – Emerging markets lagged developed markets in November, but they are still outpacing over the past year. Brazilian and Mexican markets dropped sharply, recording losses of -11.20% and -12.76%, respectively. Much of the losses are due to currency effects. Russia recorded a gain of 4.75%.

 

globalsectorCommentary: Financials Record Strong Returns – Financials and energy posted the strongest global sector returns of 7.36% and 5.20%, respectively. Utilities, consumer staples, and infrastructure trailed other global sectors in November.

 

domesticequityCommentary: Value Outperforms in November – Domestic value indices outperformed their growth counterparts across all market capitalization ranges. Value has outperformed growth over the past one year and five year periods.

 

foriegnequityCommentary: Growth in International Markets Lag – In the international developed markets, value indices outperformed growth indices, recording smaller losses. Over the past year, value recorded positive returns while growth is negative.

 

liquidityCommentary: Money Market Yields Remain Low – Money market funds continue to have very low yields, performing in line with the 3 month T-Bill Index. The yields failed to keep pace with changes in the Consumer Price Index.

 

disflationaryCommentary: Catastrophe Bonds’ Steady Performance Continues – The returns of deflationary hedges were mostly negative. Much of the declines have come post-election. Leveraged loans and catastrophe bonds posted the highest returns of 0.26% and 0.38%, respectively.

 

inflationsesitiveCommentary: Gold Gives Up Some Early Year Gains – Inflation-sensitive investments recorded mixed returns for the month. Energy related investments recorded positive returns. Gold and infrastructure lagged.

 

worldcurrenciesCommentary: Mexican Peso Continues to Weaken – The U.S. dollar continued to appreciate against other currencies. The British Pound, Japanese Yen, and Mexican Peso depreciated the most versus the USD over the past three months. The Australian Dollar and Yen have appreciated the most over the past year.