UGC MONTHLY MARKET UPDATE | NOVEMBER 2023

Welcome to the UGC’s Monthly Market Update for November 2023.

Join UGC’s CEO & Chief Investment Officer, Joel Hewish, as he takes a deep dive into the latest financial market trends and conditions for the US and Australia, as well as providing an in-depth analysis of the stock markets.

Don’t miss out, CLICK HERE to get the latest video education from UGC.

MARKET OVERVIEW – US

  • Small Caps undervalued relative to broader market.
  • Market concentration driving index return but not broad stock return.

MACROECONOMIC OVERVIEW – US

  • US yields hit their highest level since 2007.
  • Rate cut best are surging, globally.

MACROECONOMIC OVERVIEW – GLOBAL

  • China is experiencing deflation while other economies grapple with rising prices.
  • Cost of debt gaining momentum.

SUMMARY

  1. After a pick-up in the 3rd quarter, US inflation retraced and recommenced its downtrend, signifying that the US Federal Reserve is likely now done with rate hikes, but not before creating havoc in stock prices in late October, where most major global stock indexes undercut their 200 DMA.
  2. Softening inflation in early November saw bonds yields dramatically decline, helping stocks rally sharply in early November. Breadth is still very narrow but it’s improving.
  3. We’re now in the seasonally strongest period for stocks until May 2024. If inflation and bond prices continue their downward trajectory, this is a positive for stocks.
  4. We’re recently recommended clients increase exposure to approximately 54% in our investment strategies, and we’ve commenced cautiously taking some new trades in our hedge fund. We’ll only get more aggressive on the back of trading success.

UGC General Advice Past Performance Warning

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