Cheerful for the Holidays
Markets rallied in November giving investors plenty for which to be thankful
Key Observations
- Longer dated interest rates experienced a significant decline as market sentiment leaned towards anticipating 2024 rate cuts.
- Overall, markets showed positivity, driven by heightened risk appetites fueled by the decrease in rates and a less hawkish central bank.
- Investors holding excess cash may face opportunity costs if anticipated rate cuts materialize in 2024.
Market Recap
Interest rates fell sharply during the month driven by moderating inflation data and a subsequent shift in the Federal Reserve’s tone towards a less hawkish stance. Global markets saw a rally with investors anticipating monetary easing. Although the U.S. yield curve exhibited a “bull flattening” trend (with the long end falling more than the short end), it remains inverted.
