A Not Novel November

Monthly Market Snapshot: November 2021


Global equity markets stumbled in November with the MSCI All Country World index falling by 2.5% as investors digested the potential for tighter central bank policy and a new COVID variant. In the U.S., the Dow Jones tumbled 3.7% while the NASDAQ eked out a 0.3% gain as investors moved away from cyclicals and towards defensive stocks once again. However, we do not see this as long-term trend. European stocks underperformed –falling 7.0% -as several countries either announced (Austria) or considered (Germany) renewed COVID lockdowns as cases rose once again.

The Omicron variant of the COVID-19 virus further clouds the outlook for financial markets but dealing with COVID is not new (or novel). It will likely take a couple of weeks to discern the efficacy of current vaccines and the transmission rate of the new variant, but it is important to remember that we have learned to fight back through vaccines and social-distancing protocols (if needed). As citizens become more acclimated to Covid, each new wave seems to lead to less market reaction.

Citi’s Global Investment Committee (GIC) kept its asset allocation unchanged with a +6.0% overweight on its Global Equities allocation and a -6.0% underweight on its Fixed Income and Cash allocation.