Market Note
Narrow Leadership
November 28th, 2025
Chart Source(s): SG Cross Asset Research/Quant, FactSet
The lack of strong market breadth YTD has been a prominent feature of the market backdrop, evidenced by 35% of the S&P 500 now currently in bear market territory.
The lack of market breadth has been negatively impacting Equity Long/Short strategies that seek to select stocks outside of the Mag 7 to own while use a mix of individual equity shorts and market hedges on the short side.
Global Markets & Economic Data
- Markets Summary: Risk sentiment vastly improved this week in anticipation that the Fed will cut in December, amid liquidity being curtailed by holiday trading volumes.
- US: Consumer confidence fell sharply in November but Thanksgiving holiday travel hit record levels at 82 million, and early holiday shopper projections were robust, suggesting a resilient consumer.
- Switzerland/Europe/UK: Swiss payrolls data was stable. German IFO business sentiment unexpectedly declined. UK budget negotiations resulted in plans for increased taxes and spending.
- Japan: Tokyo core CPI rose 2.8% y/y and October Japan industrial production, and retail sales data came in stronger than expected.
Index Returns Summary
| Asset Class | MTD | YTD |
|---|---|---|
| MSCI World | -3.26% | +16.96% |
| MSCI Asia Pacific | -3.74% | +19.76% |
| MSCI Europe | -1.90% | +27.28% |
| MSCI China | -4.68% | +31.76% |
| Bloomberg Barclays Global Aggregate Index | -0.45% | +7.19% |
| Bloomberg Commodities Index | +0.21% | +8.85% |
| HFRX Global | -0.53% | +5.84% |
| HFRX Macro/CTA | -1.03% | +3.00% |
| HFRX Equity Hedge | -0.89% | +8.12% |
Index data as of November 21, 2025
Market Spotlight: The math does not math
Chart Source(s): US Treasury
Record tariff revenues and increased individual tax receipts have resulted in higher budgetary cash inflows, yet rising interest costs and elevated expenditures have kept the deficit substantial. The U.S. budget deficit reached $284 billion in October.
Market Spotlight: The Golden Age of Travel
Chart Source(s): AAA, S&P Global Market Intelligence
Thanksgiving travel is set to break records this year, with an estimated 6 million domestic flyers expected. The Department of Transportation (DOT) is launching a campaign to promote civility in commercial air travel. Sean Duffy from the DOT suggests,"Whether it's a pair of jeans and a nice shirt, I encourage people to dress a bit more appropriately."
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Contact UsDisclaimer: This material has been prepared by MASTERPIECE ADVISORS for informational purposes only and should not be construed as financial advice. Investments in hedge funds are speculative and involve a high degree of risk. This material is confidential and may not be disclosed without the express written approval of MASTERPIECE ADVISORS.