Market Update

Market Review – Cheerful for the Holidays

By December 7, 2023No Comments

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.

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