November 2020 will be marked down as one of the craziest months in a year not exactly monotonous by recent standards.
As seasoned market watchers, we are used to volatility and occasional extreme returns but last month had a veritable feast for the statistical minded amongst us.
A highly charged US presidential election and the dénouement (perhaps!) of the Brexit saga all competed for headlines with the ongoing pandemic. And yet the stock market witnessed the best November performance since 1928!
The Momentum Harmony USD Global Equity Fund, a fund of fund, published outstanding monthly returns:
These are incredible figures to comprehend. Not only one or two equity funds showing double-digit returns but actually 6 funds returned greater than 20% last month. It is important to remember that these figures are not from a low base either – this is not March or April, when there was a bounce back from the terror that engulfed the markets due to the arrival of COVID lockdowns the previous month. These numbers are a continuation of a generally strong summer.
However it gets better, as equity returns were not the only winners, by any stretch.
Real Estate caught the growth bug and some REITS grew by 15%, while the Ediston Property Fund was up by almost one third. REITS did come off a relatively weak summer, and a pretty insipid year all told, so they had a decent rebound on COVID vaccine news
The other highlight was the performance of fixed income, with stellar figures (for them at any rate) of something between 5% and 8%. In days of zero interest rates that is a pretty impressive return over an admittedly short period.