The S&P 500 had its best November in 40 years
After a high-flying November on the stock market, with the S&P 500 achieving its best record in 40 years, and the Ibex gaining 11.5% in its best month in three years, the increases seem to have run out of fuel to continue. Goldman Sachs has issued a warning to investors that they should be prepared for a correction in the stock markets.
The investment bank considers that the dynamic of lowering debt yields in the heat of the expectation of an upcoming rate cut has run out and “it has run out of gas.” To do this, it relies on the evolution of the flow of funds and the positioning of systematic investors, Bloomberg reports.
The increase in the probability to 70% that the US Federal Reserve will lower rates already in the first quarter of the year would have caused a rush towards equities by commodity advisors, who would also have taken long positions and short in the futures market. “This is the fastest increase in exposure we have ever seen,” notes the note sent to its clients.
In the case of the Spanish market, last month the Ibex achieved its best monthly record in three years, a trend that the rest of the European stock markets joined in to a lesser extent, with the Stoxx 50 registering 7.9% in the month, the Cac added 6.17% and the Dax, 9.5%.