Looking back on November 2021


Key points

  • The fund was up 12.4% in November 2021
  • Economic and business news in November gave growth stocks a lift
  • But we still feel that fear is the dominant emotion in markets just right now

Our monthly update for November 2021 is now available.

The fund was up strongly in November, as markets shrugged off earlier concerns about corporate profits, inflation and interest rate rises. But that trend started to reverse in the last few days of November as fears of the Omicron Covid-19 variant and a more hawkish Fed brought the market's fear back to the forefront.

Our sense is that fear is still the dominant emotion in equity markets right now. That mainly manifests itself in quick and sudden reversals at even the hint of bad economic news (or even anything other than stellar economic news). But it also manifests itself in FOMO (fear of missing out) as well. It feels very reminiscent of late-2018, which was the last time the Federal Reserve began to taper its economic stimulus and look to raise interest rates. Maybe the only thing we learn from history is that we don't learn from history.

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