The Nasdaq Composite ended the month up +4.37% and in EUR terms +0.04%. We had a negative performance in November of -1.83%.
Lower than expected inflation US headline and core, triggered a US Equity relief rally and Treasury yields drop. Powell indicated that we should expect a higher terminal Fed Funds rate and as many commentators highlighted, market rally loosens financial conditions. That said, on the 30th of November at the Brookings Institution speech Powell confirmed, in a less hawkish tone, what other FOMC members already anticipated, and US markets staged a rally on the back of slowing rate rise expectations.
Looking ahead to December FED rate hikes, more inflation and job data. We may get a 50bps instead of a 75bps hike but probably the FED will have to keep rates higher for longer than previously expected. Given the macro backdrop we remain extremely cautious. At this stage, our protection on our USD exposure looks correctly executed and properly reflected in our Monthly performance. In the last 3 months the portfolio returned +3.6%.
As we approach the end of 2022, we would like to compare the Multi Thematic against an ETF that has many characteristics in common with our product and tracking the Solactive Innovative Technologies Index. Therefore, this month we will have our chart versus this specific ETF unlike the usual Nasdaq Composite.
DISCLAIMER: Past performance is not an indicator or a guarantee of future performance.
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