Markets in November 2025 remain in a monetary tightening phase, with restrictive policy settings weighing on growth while inflation dynamics evolve. Despite the challenging macro backdrop, stabilizing factor signals point to selective tactical opportunities for professional investors

Markets are transitioning into a deceleration phase, with easing economic momentum and increased equity volatility. While the near-term outlook supports a neutral stance, shifting inflation dynamics and stabilizing signals continue to create selective tactical opportunities for investors

Markets navigated a volatile September as tightening financial conditions, persistent inflation, and late-cycle economic signals drove higher dispersion across equities, rates, and currencies.

August saw markets adjust to sustained policy tightening, with equity flows recalibrating, FX behavior evolving, and investors increasingly differentiating across regions, sectors, and styles.

July markets extended gains in risk assets as growth proved resilient and financial conditions remained supportive, while rates and FX signaled recalibration rather than a decisive macro turn.

June markets reflected a transition phase as tighter monetary signals increased dispersion across equities, rates, and currencies without triggering broad-based risk aversion.

May markets navigated a gradual economic deceleration, with equities holding gains, credit remaining stable, and investors becoming increasingly selective across sectors and regions.

April markets reflected a transition toward slower growth, marked by increased factor rotation, stable credit conditions, and a measured response across rates and currencies.

March markets turned more defensive as tighter monetary signals drove equity drawdowns, firmer yields, and a renewed focus on inflation risks.

February markets digested tighter financial conditions through factor and regional rotation, with higher yields, a firmer dollar, and increased selectivity across risk assets.

January markets opened the year with elevated dispersion as restrictive policy expectations drove equity leadership changes and reinforced a selective risk environment.

2024 unfolded under elevated interest rates and tight financial conditions, yet equity momentum strengthened as SPY and QQQ outperformed and leadership rotated toward Technology, Communication Services, and Energy. Long-duration bonds continued to face pressure, with zero-coupon profiles posting negative returns, while FX markets remained volatile as shifting rate expectations drove swings in EUR/USD and USD/JPY. Overall, 2024 marked a transition toward clearer equity trends despite a restrictive macro backdrop.

2023 marked a key transition year for global markets as easing inflation and steadier rate expectations helped stabilize volatility and lift investor sentiment. Equity benchmarks like QQQ and SPY led the recovery, driven by strong growth and innovation factors, while Technology, Communication Services, and Consumer Discretionary outperformed. Bonds posted mixed results as long-duration exposures remained sensitive to rate shifts, and FX markets reacted to changing policy expectations across USD, EUR, and JPY. Overall, 2023 signaled a shift from Monetary Tightening toward Cyclical Rebound and Expansion, creating a more constructive landscape for investors following the disruptions of 2022.

2022 marked a major market reset as inflation surged, interest rates spiked, and long-duration assets suffered historic losses. Energy stocks led global markets, while growth tech and long-term bonds experienced deep drawdowns. The 2022 Market Letters highlight a clear shift toward value investing, strong U.S. dollar momentum, and a volatile, tightening-driven regime that reshaped investment strategies across equities, credit, and FX.

2021 delivered one of the strongest expansion phases in global markets, marked by robust equity leadership, healthy sector rotation, and steepening yield curves that pressured long-duration bonds. With FX movements reflecting shifting interest-rate expectations, the year set the foundation for the dramatic regime changes that followed in 2022. Here’s what investors need to know about the signals that defined the market’s momentum.