Recap of November so far

As we recover from the great national holiday of turkey, family and football we see the world of securities start to slow down. According to Market Watch the days before and after Thanksgiving make up two of the five slowest trade days for the year. This slow down allows us time to reflect on what we have seen so far in the month of November.  So far this month we have seen:

  • The Cubs win the World Series for the first time in 108 years
  • Donald Trump gets elected President of the United States
  • Major earthquakes hit Fukushima, Japan in similar fashion to the 2013 triple disaster
  • Vin Scully us award the Presidential Medal of Freedom

We have also seen global markets increase volatility from fear of a changing trade environment, US equity markets have a surprise rally in the wake of possible corporate tax reform and US interest rates start to climb. Looking forward we will continue to have major events as the global markets will need to digest what policies the new president will put into place and what Brexit is going to really look like for the EU.

We will continue to hit these bumps in the road, but we need to plan for the full journey and not focus on the potholes along the way. People fled from Latin American banks over the past couple of weeks resulting in a rough patch for our International accounts. Over the past week we followed our game plan of watching the signals and trusting our process. The results have been a strong week of outperformance vs. our benchmark; we continue to be very happy about how this strategy has performed compared to its benchmark over time. The process while it does not have the sizzle of a hot stock picker does have a great story of out performance over full market cycles and exposure to places in the world that an individual investor often does not have the knowledge to invest.

When talking to clients, friends and family this holiday season I always like to have a good story. The story this year is about finding value in places others have abandoned out of fear or taking a step back, staying true to a thoughtful investment thesis.

If you are interested to learn more about our investment thesis in our International strategy,  Andy Hyer can be reached at andyh@dorseymm.com or 626 535-0630

Charles Coleman
Associate Portfolio Manager
Dorsey Wright & Associates

The relative strength strategy is NOT a guarantee.  There may be times where all investments and strategies are unfavorable and depreciate in value.

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