November Market Insights: Rotation Beneath the Surface

Global markets paused in November after a stellar run earlier in 2025. Despite the resolution of the record 43-day U.S. government shutdown, uncertainty around economic data and monetary policy tempered investor enthusiasm. Developed markets eked out a modest +0.3% gain, while emerging markets lagged, weighed down by tech-heavy regions like Korea and Taiwan.

Technology stocks led the decline, falling 1.3%, as concerns over lofty valuations and aggressive AI-driven growth forecasts overshadowed NVIDIA’s strong earnings. This reversal marked a sharp contrast to earlier months, with defensive sectors such as healthcare and consumer staples outperforming cyclical names.

Earnings Strength vs. Market Reality

The U.S. earnings season remained robust:

• 81% of S&P 500 firms beat estimates

• EPS growth hit 13% year-over-year, supported by revenue and margin expansion

• The “Magnificent Seven” saw 2025 EPS growth expectations surge to 22%

  
  

Yet, markets barely moved (+0.1%), signalling that optimism may already be priced in. At Intrasia Wealth, we caution that high valuations often come with heightened risk if growth targets falter.

Regional Performance Snapshot

• Europe ex UK: Financials and IT strength lifted equities +1.1%

• UK: Modest +0.03% for FTSE 100, held back by consumer weakness

• Asia ex Japan: Profit-taking hit Korea (-3%) and Taiwan (-4%)

  
  

Fixed Income & Commodities

Global bonds were flat (+0.2%) amid mixed U.S. labour data and Fed policy uncertainty. U.S. Treasuries led gains (+0.6%), while Japanese bonds fell sharply (-1.3%). Commodities rose on precious metals strength, offsetting energy weakness.

Investor Takeaways

November’s rotation highlights the need for regional diversification and quality exposure. Defensive sectors are regaining favour and high-quality bonds remain critical for risk management,especially if AI optimism cools. As we look ahead to 2026, balancing growth ambitions with valuation discipline will be key.