The Month in a Minute
After a shaky start, November enjoyed a steady recovery that returned markets to previous highs. Despite the initial volatility, investors proceeded with cautious optimism, moving money to more defensive sectors and looking forward to further rate cuts in December. Wealthify Original and Ethical Plans slightly underperformed their benchmarks.
Markets display resilience by recovering previous highs.
November kicked off with renewed concerns about an AI bubble, after a sharp sell-off affected US tech stocks, in particular. These worries were ultimately short lived, however, with the S&P 500 returning to previous highs by the end of the month.
Following this recovery, investor behaviour shifted.
Money flowed out of riskier sectors like technology, consumer discretionary, and industrials, into defensive ones such as healthcare, utilities, and consumer staples (all of which posted strong returns).
This shift highlighted growing caution among investors, even as markets showed resilience.
Central banks remained a key focus, too.
Early in the month, uncertainty surrounding US interest rates and a temporary government shutdown dampened expectations for a December rate cut.
Fortunately, markets took a more positive turn, as the shutdown ended and policymakers adopted a more optimistic tone.
Closer to home, the Bank of England (BoE) and European Central Bank kept interest rates stable.
Of course, there was also the announcement of the UK’s autumn budget.
The proposals put forward by Chancellor of the Exchequer, Rachel Reeves ultimately received a largely positive response.
Domestic mid-sized companies performed especially well, reflecting growing confidence in the country’s near-term economic outlook. Stocks from large companies also delivered good returns, contributing to a generally solid month for the UK market.
In Asia-Pacific markets, China faced steep declines, as concerns around its troubled property sector continued. One bright spot was India, which saw gains driven by strong domestic spending, economic reforms, and capital redirected from China.
While November felt a little subdued compared to previous months, it does at least stand as a good reminder of how varied the markets can be — particularly at current valuations.
Investors are moving forward with cautious optimism, keeping a close eye on central bank policies and other global developments.
With the end of the year on the horizon, attention is focussed on central banks and potential rate cuts, which could set the tone for 2026.
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References
[1] US central bank cuts key lending rate by a quarter point - BBC News
