Core Insights - November experienced increased market volatility, concerns over high valuations, and uncertainty regarding monetary policy, yet North American equities managed to finish positively for the seventh consecutive month, driven by solid earnings and expectations of continued Fed policy easing [1][4] Market Performance - The S&P 500 Index recorded a modest gain of 0.25% in November, marking its worst performance since April, after spending most of the month in negative territory [2] - Canadian equities outperformed, with the TSX Composite Total Return Index rising by 3.9%, led by the Materials sector [5] Economic Indicators - Investors faced mixed economic data, the lingering impact of the U.S. government shutdown, and concerns about the sustainability of AI-driven capital spending, particularly affecting the tech sector, which saw a decline of 4.4% despite strong earnings [3][4] - The U.S. labor market is perceived to be weakening, while inflation appears controlled, allowing the Fed to consider further easing [6] Future Outlook - December typically favors equities, but current elevated valuations and uncertainties regarding AI investments may limit potential gains, despite strong earnings fundamentals and seasonal support [7] - The overall economic environment remains stable, with inflation trends being mildly lower, which has kept bond yields rangebound [9]