This is the November edition of Edison Group’s Insights. They open with a strategy piece by Alastair George, who believes that the monetary tide has turned with bond yields in the US and Europe tumbling during November while inflation falls and policy rates peak. This has proved a welcome respite for global equity markets, which were under pressure from rising bond yields over the summer. A massive sector rotation will have frustrated many absolute return investors over the past two years. In 2022 only the energy sector delivered positive returns while semiconductors and technology delivered substantial declines of 30% or more. This year semiconductors and technology have been the standout performers as rising bond yields crimped performance in slower growing and dividend-paying sectors.
