Issue link: https://info.seic.com/i/1541871
Executive Summary • Equity markets faced a correction in November, with concerns around heavy artificial intelligence spending driving volatility in U.S. large-cap technology stocks, the so-called Magnificent Seven. Approximately £566bn in market value was wiped out from major AI- related names during the first week of November (Financial Times). Meanwhile, sectors such as financials and pharmaceuticals offered relative resilience, presenting attractively priced opportunities else • Earnings season wrapped up strongly, with 81% of S&P 500 companies beating expectations (JP Morgan). Technology-related earnings were robust across the U.S. and Europe yet failed to translate into positive market performance. Meanwhile, other sectors in Europe delivered mixed results, reflecting ongoing economic headwinds. • U.K. markets remained steady amid Autumn Budget anticipation. Initial dips in equities and 10-year gilt yields reversed, returning to pre-budget levels. Inflation continued its downward trend, falling to 3.6% in October from 3.8% in September, largely due to lower energy prices. Economic Factors Interest Rates • The Bank of England held rates steady at 4% at the November meeting, signalling future rate cuts will depend on inflation trends. Expectations of a December Federal Reserve rate cut increased after recent dovish comments from policymakers. Inflation • Inflation in the Eurozone eased to 2.1% from 2.2% in September, nearing the ECB's 2% target. No U.S. inflation data was released in November due to the government shutdown. Economic Growth • U.K. Q3 GDP slowed to 0.1%, missing expectations and down from 0.3% in Q2 amid weak demand and fiscal uncertainty. Tactical Views Fixed Income • We maintain a defensive approach in credit markets and a neutral stance on duration, while positioning portfolios to benefit from a continued steepening of U.S. and European yield curves. Global Equities • We remain committed to a well-diversified portfolio across size and geographies to limit the impact of further potential market volatility. Our focus remains tactically tilted towards attractively prices 'value' companies. Pessimistic Optimistic Pessimistic Optimistic SEI Monthly Update November 2025 This is a marketing communication Pessimistic Optimistic Pessimistic Optimistic Pessimistic Optimistic Legend SEI's Current View: Direction of movement from previous: For use by advisers of regulated intermediaries in the UK in acceptance with all applicable laws and regulations