Economy and Indices – November 2019

The ASX gained +3.1% over the last month to reach new all-time highs. This compares to the 3.8% rise on the US markets, also at new highs.

As an extension of last month, the leading growth, or momentum shares, on the ASX, have still not regained their highs. Despite these companies providing most of the key growth on the ASX over the last two years, the ASX climbed to new heights.

The economic backdrop remains less inspiring, with no noted changes to the lower global growth forecasts, lower inflation forecasts and unemployment rates creeping higher. These factors are generally not conducive to higher markets in the medium term; however prospects of better trade arrangements seem to be the driving force.

Leading Sectors This Month

Health Care +13%; second consecutive month in first position

Information Technology +11%; coming from second-last last month

Consumer Staples (grocers) +9.1%

Lagging Sectors this month

Financials -4.4%; second consecutive month in last position

Utilities +1.98%; out-performing last month by 1%, yet moving from third to second last this month

Property + 2.6%.

Banking shares are in last position this month, highlighted on the lime green line at the bottom of the chart, showing the only market industry to be down this month: