This is marketing material
November Market Summary: Trumpsgiving
30th November 2024
The late October blues quickly reversed after Trump´s US election victory in early November: his promises to cut taxes, deregulate and maintain a loose fiscal policy, among others, lifted US stocks and global equities alongside.
The Equity gains were broader than during previous Tech-driven months, with US equal-weighted indices and SmallCaps outperforming the market.
Growth-sensitive Fixed Income sectors, such as High Yield, also added to their year-to-date (YTD) gains (8.7% in the case of US High Yield). US Treasury bonds, which initially weakened due to fears that Trump’s policies may be inflationary, reversed course after the appointment of hedge fund manager Scott Bessent as Treasury Secretary.
Lower oil prices, on the back of Trump’s fossil fuel-friendly views, also appeased inflation concerns.
The situation in Europe was far less rosy: stocks slightly dipped given the region’s mounting woes, including potential US tariffs to European exports and rising political instability in France and Germany.
The US vs European equities disconnect is now at historic heights: at $63 trillion, US stocks are now worth four times all Europe’s exchanges combined; a decade ago, it was barely two times.
Emerging Market (EM) Equities fell on the back of potential Trump protectionist policies. Instead, EM hard currency bonds posted positive returns, given a rising US dollar and improving Chinese economic data.
Against this backdrop, more than 80% of MIFL funds delivered positive returns, with European and EM Equity strategies lagging behind.
Data as of 30.11.2024. Source: Bloomberg
Disclaimer
Data as of 30.11.2024. All the above reference indices are expressed in local currency terms.
This communication is not ‘investment research’ and is classified as marketing material. Before making any investment decisions, please refer to the relevant Prospectus and to the Key Information Document.
The commentary contained herein is for informational purposes only and may be subject to change. It does not constitute investment or any other advice or recommendation, nor does it constitute an offer or invitation to anyone to invest in the product and should not be construed as an offer to sell or a solicitation of an offer to buy and should not be used for making investment decisions.
MIFL does not provide any representation or warranty, either express or implied, as to the accuracy, completeness or correctness of the information contained herein and accordingly does no liability, direct or indirect, is accepted in connection with an investor's reliance on this information.
A summary of investor rights associated with an investment in funds managed by MIFL is available at www.mifl.ie.
Mediolanum International Funds Limited is part of the Mediolanum Banking Group and is authorized by the Central Bank of Ireland as a UCITS fund management company.
