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Following three consecutive monthly declines, public equity markets in developed and emerging markets rebounded, returning nearly 10% across most regions except for the UK during November. From a factor perspective, the UK stood out as an outlier, being the only region to prefer Value stocks and eschewing Growth, resulting in a modest 3% return for its public equity market in November.
The latest research from leading global technology solutions provider, Confluence: November 2023 Factor Performance Analysis – Disinflation and Strength in Volatility examines equities across five regions- United States, Europe, United Kingdom, Canada, and Emerging Markets. A review of the data reveals the following factor summary:
- Europe: Volatility, Quality, and Growth outperformed
- November marked a distinct shift in European factor performance with Volatility stocks taking the lead for the first time, displacing the previously favoured Value and Yield equities that European investors preferred throughout 2023.
- UK: Volatility, Value, and low gearing (Quality) outperformed
- The UK deviated from the Developed Markets trend by continuing to favour Value stocks instead of Growth. Consequently, the UK markets’ performance shadowed that of other Developed Markets, registering a modest 3% gain compared to the nearly 10% seen in its counterparts.
