Global Markets Newsletter – November 2020

November was a month where the Uinted States elected a new president and corona virus hit its maximum levels in terms of affected people and deaths. With president Biden corporate tax raise is expected but also better foreign policy. However, economy may have its issues and investors are wary and markets are less volatile.

In the US in November, imports and exports stayed at the same levels ($240bln and $176bln respectively), US non-farm payrolls were better at 906k from 892k and unemployment was announced at 6.9% from 7.9% (significantly improved). Retail sales lowered by 4.9%, industrial production was also diminished by 5.34%, real estate industry has improved with new home sales up by 4.9% and building permits steady.

In Europe, the UK is one of the first countries which the new anti-covid vaccine was distributed. However, the European economy continues to have issues which refrain the whole economy from growing such as marginal zero inflation (-0.3%), unemployment at 8.4%, GDP worst in yearly terms (-4.45%) but much higher in quarterly terms (12.6%). In other eurozone economics, retail sales diminished by 2% and industrial production dropped by 6.8%. Finally, manufacturing PMI dropped at 53.6 from 54.8 (numbers above 50 indicate growth and not recession).

In Greece, the General Index reacted and passed 700 units nearly touching 740 units (736.92). Some reports from investment houses indicate Greece to be at significant growth in the 2021 with the corona virus effects left behind. Bonds reacted accordingly confirming the country’ s credibility.

The EUR/USD reacted in favour of the European currency as US supply remains ample. High liquidity of the dollar may continue reflecting the results of the financial aid in the US, hence enforcing the European currency. Volatility is expected to decrease.

Our preference remains the american equities versus european stocks where we hold no position. US equities hold 60% of the total portfolio which the technological sector holding 60%. Cash remains crucial as corrections are buying opportunities often.

S&P-500 (year-to-date)
Dax-30 (year-to-date)
EUR/USD  (year-to-date)

Disclaimer: This document is for general information only and is not intented as investment advice or any other specific recommendation as to any particular course of action, or to solicit any product or service. The information provided herein is not legally binding and it does not constitute an offer or invitation to neter into any type of financial transaction. The information in this document does not take into account the specific investment objectives, financial situation, tax situation or particular needs of the reciepient. You should seek your own professional advice suitable to your particular circumstances prior to making any investment or if you are in doubt as to the information in this document.