Dollar and US equities gain towards the end of the year – Month in Review: November 2024
Macroeconomic Environment Review
In November, the US dollar experienced a notable appreciation against the euro, rising from 1.0859 to 1.0550. However, it depreciated against the yen, declining from 152.43 to 150.44. This movement followed the Federal Open Market Committee’s (FOMC) decision in November to reduce the federal funds rate by 25 basis points, bringing the range to 4.50%–4.75%, following a 50 basis point cut in September. Looking ahead, we anticipate that the Federal Reserve will implement fewer rate cuts than initially projected in 2025. Assuming a rate cut on December 18th, we expect an additional three cuts in 2025, which aligns closely with current market expectations.
The US election results were the key driver of market performance in November, with Donald Trump’s presidential victory and the Republican party securing majorities in both chambers of Congress. This outcome fueled expectations of continued American exceptionalism in both the economy and markets. US equities significantly outperformed other regions, rising by 6%. Anticipations of deregulation boosted US financials and the energy sector, while the industrial sector was seen as a major beneficiary of tax cuts and trade policy. Additionally, the Q3 earnings season was moderately positive, with earnings per share growth surpassing expectations at 9% year-on-year.
Monthly Performance Review
During November 2024, AENAON Systematic Strategies generated the following total returns:
Across the spectrum of our benchmark indices, our strategies’ performance during November was rather mixed. As a comparison, the US S&P 500 equities index added 5.73%, the Barclay Hedge Fund Index posted a 2.20% advance, the Barclay CTA Index gained 0.85% while the other benchmark indices can be seen on the chart below.
Chart 1: Monthly Performance vs. Benchmark Indices – November 2024
Charts 2, 3 and 4: Inception-to-Date Performance vs. Benchmark Indices
You can always review our updated factsheets at the following Fundpeak links, with monthly performance updates and statistics since inception:
