Although November was a month with a good performancethe reality is that the volatility remains high🇧🇷 Investors remain nervous and attentive to the evolution of the economy or, more specifically, to the guidelines that the monetary authorities continue to issue, taking into account the continuation of interest rate hikes.
G20
The G20 meeting was one of the events of November. In a phase of political tension, with the Russia/Ukraine conflict dominating the attention, this meeting turned out to be a message of some serenity, above all for allowing Joe Biden and Xi Jinping to meet and discuss fundamental issues for world stability. The handshake with which they “sealed” the meeting it was an important imagesince they are the two largest economies in the world, with the respective relevance, and which have had some divergences and trade “wars” that have generated greater instability in the economy and in the financial markets.
China – Covid zero policy
China continues with a zero Covid policy. Confinements, city closures and complications for citizens. These are some of the measures that have conditioned the day-to-day life of the Chinese populationlargely due to the rigidity of the authorities🇧🇷 Due to the difficulties that have been felt, various disputes began to arise throughout the Chinese territory, calling into question the leadership authority of the Chinese government. Immediately there was a reaction to control the protests. However, realizing its dimension, we begin to perceive some flexibility in managing the entire process🇧🇷 This change was very well received by the markets, as evidenced by the recovery recorded by many Chinese titles that contributed in a very positive way for the emerging markets index to have risen 10% in November.
USA – Thanksgiving Day
The week that corresponds to Thanksgiving is usually marked by less liquidity in the market🇧🇷 This means that there are fewer transactions this week, because the American stock exchanges close on Thursday and, on Friday, they only open halfway through the session. This event turns out to be reflected in the performance of the assets, since it is an atypical week.
Investment Portfolios
The moderate and dynamic portfolios had a very positive performance. Moderate with a rise of 3.16% and momentum of 4.58%. We watched a bond segment recovery, something we haven’t seen in a while. In general terms, the assets that had the best performance were those with exposure to emerging equity markets, with appreciations of 19% and 14% in two of the assets we have in our portfolio. The justification is based on the greater openness shown by the Chinese authorities in the management of Covid.
Portfolio performance with moderate profile
Portfolio composition with moderate profile
Portfolio performance with dynamic profile
Portfolio composition with dynamic profile
Purpose of our portfolios
When, in March 2021, we created these two virtual wallets, our objective was always to knowing how to explain market movements and the influence they had on our portfolios🇧🇷 We have always had this concern, not least because investment is a process that extends over time. As an example, in May 2021, we reduced risk in portfolios because we understand that the performance of financial markets did not have a logical or rational justification. It took some time, but the reality is that our current positioning, despite showing a negative performance, is better than the initial portfolio. volatility. the fundamental is to understand where we are invested and why🇧🇷 Realizing that in the midst of panic there are always opportunities, and having the rationality to distinguish and find quality assets. Because these, when everything calms down, will recover and generate returns…note: The Doctor Finance portfolios are not and should not be understood as advice to invest in this or that type of financial instrument. Our portfolios were created only to illustrate the potential risks and benefits of investing, directly or indirectly, in financial instruments such as stocks and bonds.
A professional writer by day, a tech-nerd by night, with a love for all things money.