The Mosaic Global Fund’s estimated performance for the month of November is 1.12%, which brings the estimated year to date return to -0.39%.
The month of November continued to be positive for stocks supported primarily by political events. The US stock market continued to be strong and ended the month very close to its all-time highs. A lot of focus was put on Ben Bernanke’s replacement, Janet Yellen, who will take office next year. After some ambivalence on where the Fed would stand in regards to QE going forward, the markets settled on Mrs. Yellen being in favor of supporting continued spending to uplift the economy, which was likely one of the drivers behind the continued strong US stock market.
In Europe, the ECB helped support the markets with an interest rate cut. Positive discussions also concluded regarding Iran’s nuclear program where some progress was made that seemed to ease tensions.
During the month, our trend following holdings showed strength and were the biggest contributors to the month’s positive returns. Also hedge Funds and our equity market exposure showed gains.
Looking ahead, we are continuing to be cautious with many markets showing weakness or continued weakness. The current scenario is quite an interesting one with commodities generally being very weak, as they have been for some time. Gold and silver are also showing continued weakness. The bond markets are down-trending, resulting in increased interest rates. We are also seeing emerging markets being continuously weak but showing signs of a nascent recovery. The only stronger markets are to be found in stock markets in the developed world but even here we see signs of these markets getting a bit “tired”. What will happen next is as always difficult to predict, which is why we rely on our Trend and Momentum Filters that helps us stay invested in up-trending markets and help us exit markets turning into down-trends.
Have you had a chance to speak with us about our new Trend and Momentum Filters yet? If not, please drop us an email on, email@example.com, or give us a call on, +352 202 033 27, to find out more. We look forward to speaking with you shortly.
To Your Investment Success!
Per-Olov Jansson & the Cardea Investment Team