November 2016 – ADIFO Global Market Review
A surprising Presidential election victory by Donald Trump resuscitated a flagging S&P 500 index, powering a textbook rebound off of its 200-day moving average to reach all-time highs. US markets are now up 7.6% with one month left in the year, eclipsed only by the FTSE100, up 8.7% in local currency, and by emerging markets which are up by a similar margin despite having lost –4.7% in November. The rally in Japanese equities, which we flagged last month as having the strongest reading in out technical scoring methodology, continued unabated as the Yen weakened, gaining 11.3% in local currency over the past 2 months. Emerging markets were the worst performers in November as concerns over a strong dollar and potentialrise in protectionism under a Trump government led to a sharp selloff.