Outlook - November 2021

SUMMARY OF THE MONTH

Equity markets suffered during the month, initially due to inflation fears and the emergence of the Omicron variant, which allowed the S&P 500 after a positive last few days to close with a loss of 1%.

The market has likely overreacted to Omicron's announcement, as there is insufficient data to know how individuals and economies will be affected by this new Covid-19 variable.

We believe that we will face high levels of volatility over the next few weeks, as breadth indicators show weakness and the variance may derail the recovery, taking us back to neutral.

MACRO CORNER

November was a difficult month for investors. Both from a price action point of view and from the point of view of having a clear visibility of the scenario. Messages were mixed, so uncertainty remains high. November presented two particularly jarring situations: much higher than expected inflation and a new strain of COVID-19 hitting the markets the Friday after Thanksgiving.