November market review

U.S. equity markets had a strong November following the results of the presidential election. The Russell 2000 index was up 11%, its highest single monthly return over the trailing five years, while the S&P 500's 3.7% return was also among the better monthly performances for the index over the same period. Year-to-date, the S&P 500 and Russell 2000 indexes were up 9.8% and 16.4%, respectively, and both reached record highs. Stocks in the large-cap index added $571 billion in November, $75.6 billion more than the 10 months prior. The Russell 2000 added $206.5 billion after losing $28.7 billion year-to-date through October. The year did not come without volatility, as the rolling three-year risk measure ticked up during the middle part of the year. The MSCI EAFE and Emerging Markets indexes were both lower in November. The EAFE was down 5.1% on the year, while the EM index maintained an 8.7% return for 2016, despite a -4.7% decline over the month.

Fixed-income markets moved lower as rates spiked during the month in anticipation of a rate hike in December and sentiments that U.S. inflation will gain momentum. The Barclays Global Aggregate index was down 4%, the worst monthly decline in its history.