Uncertainty Looms Over a November to Remember
Investors and analysts risk underestimating the challenges ahead during this period of understandable market euphoria.
Watch for the clouds.
Photographer: Doug Kanter/AFP via Getty Images
November will be etched in the memories of investors as a remarkable month.
Risky assets, such as stocks and high-yield bonds, delivered exceptional returns. Even assets that are traditionally negatively correlated to them, such as US Treasury securities and gold, experienced notable upward price movements. Money that had been on the sidelines found its way into a diverse array of investment opportunities. Companies rushed to issue new bonds to finance investments and bolster their reserves. And all this fostered increased confidence and optimistic projections for the market and economy in the coming year.