Monthly Market Review
U.S Overview
November marked the end to the longest government shutdown in U.S history. While Congress arrived at a resolution, the shutdown had the effect of disrupting the publication of official U.S. Economic data. As of this writing, inflation and labor figures for November have been delayed.
Although the conclusions of the government shutdown brought optimism to overall market sentiment, this was largely undermined by growing skepticism around the high valuation of artificial intelligence (AI) related stocks. This skepticism was reflected in the performance of the tech sector, which was the weakest performing sector in the month of November despite strong third quarter earnings.
International Overview
Tariffs continue to inject uncertainty in global markets, contributing to continued sluggish global manufacturing data, particularly across Asia. Inflation trends in the region continue to show mixed results, with many Asian countries experiencing relatively high but stable inflation levels. In contrast, several major African economies are showing signs of inflation cooling. Several African Central Banks, including Kenya and South Africa are expected to cut interest rates by year end.
Euro Zone inflation data have shown relative stability month over month, with only a modest increase in prices, primarily driven by service sector inflation. However, Europe continues to feel the strain of sluggish growth during a period of increased government expenditure on defense.
Overall, the global economic data has been mixed, but generally stable, suggesting international commerce remain resilient despite uncertain tariff policies.
What does this mean for you?
Despite various market concerns, all but two of our portfolios experienced positive gains in November, as the diversification of our portfolios continues to provide resilience against prevailing market conditions. Steady U.S consumption and a market rotation away from AI related stocks and to more reasonably valued areas of the market all helped support performance.
An opaque future with possibility for clarity
As we head toward 2026, both domestic and global economic outlooks seem somewhat opaque as the fog of tariff uncertainty continues to hang over the economy. However, the coming weeks may provide some clarity for two primary reasons.
First, the Supreme Court is expected to rule regarding the presidential power to impose tariffs. If the court rules against the current administration, this may bring some reprieve to US consumers hurt by inflation and could add more certainty to global trade policy. Second, a new Federal Reserve Chair is expected to be appointed in the coming week, which could potentially influence the direction of interest rates.
Regardless of the current political and economic circumstances, we will continue to maintain a disciplined approach to long-term value creation and prudent short-term liquidity management.
As always, thank you for your continued trust and support. It is our privilege to be stewards of your financial assets.
Sincerely,
The Faith Foundation Team
