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However, the stellar performance of the cryptocurrency, which has been entrusted to institutional support, easily pushes out the next four best-performing global assets: Nasdaq stock index, up 34%; S.&Growth index P 500 (+ 25%); MSCI China Index (+ 24%); and gold (+ 18%).
It speaks volumes about the record levels of liquidity in the financial markets that 10-year US Treasuries have delivered a yield of around 10% this year as yields plummeted from 1.9% to 0.8%.
Favorable factors
A combination of favorable factors made this particular November very special for those exposed to risky assets both here and abroad.
Bullets include news that several credible COVID-19 vaccines may be ready early next year; the election of Joe Biden as Congress-bound US president; and his release this week of a pro-Wall Street administration, most notably Janet Yellen as secretary to the Treasury.
Also helping the market is President Donald’s admission of defeat “I was robbed” Trump; the widespread update of the global growth forecasts for 2021; the great rotation from growth to cyclicals; and an equity investment update from the world’s largest fund manager, BlackRock.
November is on track to represent the first month of this year with a positive net inflow into equity funds, according to Nikolaos Panigirtzoglou, global market strategist at JPMorgan.
Its latest note to clients states that $ 33 billion ($ 44.8 billion) flowed into equity funds in November from US-based investors. Flows jump to nearly $ 100 billion “when you look at all equity fund flows globally, including those domiciled outside the United States.”
Australia S&On Wednesday for the first time this year, the P / ASX 200 entered positive territory after a November performance that saw Bell Potter’s Richard Coppleson dust off the stock market record books.
The global economy is in good shape, especially if China is used as the leading indicator of economic activity. As Nomura’s global strategist Naka Matsuzawa pointed out this week, China was the first to control COVID-19 and has shown a rapid recovery.
But Panigirtzoglou sees some vulnerability in short-term equity markets from balanced mutual funds – a $ 7 trillion ($ 9.5 trillion) universe – that have to sell about $ 160 billion worth of shares globally to return to their allocation. 60:40 target, either from the end of November or by the end of December at the latest.
A sell-off later this month, led by portfolio readjustment, could pierce the bullish trend with a sell off. But this is unlikely to dampen an optimism-led global rally in the US.
