Global stocks have enjoyed their best month since 1988. The MSCI World index gained 12.6% in November, says David Randall on Reuters. Around $6.7trn was added to the value of global shares, equivalent to “$155m a minute”.
The pan-European Stoxx 600 enjoyed its best ever month, gaining 13.7% as the French and Italian markets notched up record returns. The FTSE 100 also had a record month (see page 5). The 15% gain on Japan’s Nikkei index was its best showing since 1994.
A month that started with Joe Biden’s election victory and progressed with a positive stream of vaccine updates kept investors in good spirits, say Claire Ballentine and Katherine Greifeld on Bloomberg. America’s S&P 500 gained 11%, a rare instance of it lagging the global average. The key theme of the month was rotation as investors moved out of tech shares and began to buy a broader range of smaller and more cyclical stocks. The tech giants lagged small caps. That goes to show that the market is finally “widening”, says Karen Langley in The Wall Street Journal. This year’s rally has been heavily concentrated in a handful of sectors. In September only 153 of the 500 shares in the S&P 500 made gains; in November, 467 did. A 17% jump in US financial shares gave the sub-index its “best month since April 2009”.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Another boost came from positive earnings news. Average S&P 500 third-quarter earnings came in only 6% lower than last year, defying predictions of a 21% slump. It is extraordinary that global markets have gained this year, even as “the virus is still on the rampage”, says Rupert Thompson of Kingswood. In a year where massive central bank support has juiced markets, rarely has the old saying, “don’t fight the Fed”, been so true.
-
Why Trustpilot is a stock to watch for e-commerce exposureTrustpilot has built a defensible position in one of the most critical areas of the internet: the infrastructure of trust, says Jamie Ward
-
Tetragon Financial: An investment trust with stellar returnsTetragon Financial has performed very well, but it won't appeal to most investors – there are clear reasons for the huge discount, says Rupert Hargreaves
-
Why Trustpilot is a stock to watch for exposure to the e-commerce market
Trustpilot has built a defensible position in one of the most critical areas of the internet: the infrastructure of trust, says Jamie Ward
-
Tetragon Financial: An exotic investment trust producing stellar returns
Tetragon Financial has performed very well, but it won't appeal to most investors – there are clear reasons for the huge discount, says Rupert Hargreaves
-
How to capitalise on the pessimism around Britain's stock marketOpinion There was little in the Budget to prop up Britain's stock market, but opportunities are hiding in plain sight. Investors should take advantage while they can
-
London claims victory in the Brexit warsOpinion JPMorgan Chase's decision to build a new headquarters in London is a huge vote of confidence and a sign that the City will remain Europe's key financial hub
-
The consequences of the Autumn Budget – and what it means for the UK economyOpinion A directionless and floundering government has ducked the hard choices at the Autumn Budget, says Simon Wilson
-
Reinventing the high street – how to invest in the retailers driving the changeThe high street brands that can make shopping and leisure an enjoyable experience will thrive, says Maryam Cockar
-
8 of the best houses for sale with electric vehicle chargingThe best houses for sale with electric vehicle charging – from a converted World War II control tower in Scotland, to a Victorian country house in Cumbria
-
Big Short investor Michael Burry closes hedge fund Scion CapitalProfile Michael Burry rightly bet against the US mortgage market before the 2008 crisis. Now he is worried about the AI boom
