November US Market Commentary

Samim Abedi

 

Following a challenging October, geopolitical headlines continued to plague overall market sentiment, despite positive U.S. economic data and comments from the Fed Chair Powell. Nonetheless, markets saw some relief in November, with the S&P 500 rebounding 2% and the S&P 500 Shariah and S&P Dividend Shariah Indices rallying as well, returning 1.8% and 5.1%, respectively.

Markets felt some relief as President Trump and President Xi met at the G20 rally and agreed on a temporary halt on trade war escalations, though no permanent solution is in sight, and President Trump’s recent tweet exacerbating fears that the tariffs will continue.

Fed Chair Powell reaffirmed the strong economic growth in the U.S. and healthy labour force but also eased concerns around a more aggressive path to rate hikes, which resulted U.S. rates ending the month slightly down, benefitting the Sukuk market

Gold rallied on the overall market uncertainty, posting modest gains for the month and contributing to overall market performance. Elsewhere in commodities, oil prices have dropped to $50-$55 per barrel, which should behave as a stimulus to consumers (increasing their disposable income), but has put pressure on energy-related companies and economies broadly.

 

November 2018 Model Portfolio Returns

Source: Reuters as of November 30, 2018. Please note that performance shown are for Wahed model portfolios. Actual client performance will depend on timing of funding and intra-quarter drift from targets. Past performance is not indicative of future results

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