COMMENTARY ON PORTFOLIO PERFORMANCE – NOVEMBER 2022

It is not since June and July 2021 that we had two consecutive months of both equity and bond benchmarks both rising together. Following a recovery in October, November has been a good month for the traditional asset classes. The diversifiers within the Acumen portfolios also largely added to the positive performances.
Optimism that the pace of price rises may be slowing and hence the continuing need for higher interest rates saw the S&P500 have its largest one day increase in over 2 and a half years. Investors moved away from the dollar and US bond yields fell. In Europe natural gas stocks are full, alternative gas suppliers have been found and gas demand has fallen sharply. Eurozone inflation fell for the first time in 17 months and core inflation (excluding food and energy) held steady perhaps heralding an easing off of rate rises in the Eurozone which is generally good for most asset classes.