Please CLICK HERE to download the November sector allocation report in PDF format.
This past October, the stock market was significantly influenced by macroeconomic factors, particularly the rise in interest rates. At its worst, the S&P 500 declined nearly 6 percentage points from its intra-month high to the low. However, with a robust rebound in stocks during the final days of the month, the decline in October was narrowed to 2.2%. In terms of sectors, Utilities reversed its previous months' downturn and stood out as the only sector to register growth in October. In contrast, Energy was the biggest laggard, with a decline of 6.1% for the month.
As we observe incremental signs of selling trend exhaustion and a sharp market rebound, we continue to maintain a constructive outlook towards the year-end. Of course, in line with the change of market dynamics, adjustments have been made in our sector allocation for November. However, keep in mind, our allocation goal is always with a long-term perspective. As a result, the adjustments we make in our monthly updates are generally smaller.
Firstly, let's discuss each sector ETF allocation in detail.Energy - Overweight (Lee) & Neutral (Newton)Energy has the most significant change in our sector allocation this month. ...