November 2012 Monthly Recap

Politics and the weather were the primary factors driving equity investors in November. The elections, concern about potential gridlock in Washington, the beginning of year-end tax maneuvers, and the continued high-wire act in Europe all contributed to volatility during the month, and Hurricane Sandy’s residual effects didn’t help. All the uncertainty put pressure on equities, particularly the Nasdaq and small-cap Russell 2000. However, 3%-plus gains during Thanksgiving week left investors grateful that only the Dow ended November in the red for the month. The techs of the Nasdaq, which had been beaten down for several weeks, also saw the biggest gains, followed closely by–for a change–the Global Dow.

The uncertainty helped bond prices, which rose as yields slipped. Oil prices edged up slightly to end the month just under $89 a barrel. Despite volatility, gold ended November at $1,727, roughly $10 higher than where it began. And despite a bump mid-month as a result of uncertainty over Greece, the dollar saw minimal gains, ending the month at just over $80 against a basket of six currencies.

Equities data reflect price changes, not total return.