Key Global Monthly Views: Equities

• Breadth across equity markets declined sharply in November as the market sold off and positioning turned very bearish, with the American Association of Individual Investors recording a surge in bearish positions. 
• However, the S&P 500 bounced off its 50-day moving average, which has provided support in the past and rallied by approximately 4.0% from the early December low to now. 
• Going forward, however, Fitch believes that the outlook will become more challenging for global equity markets as cross-currents arise due to slower earnings growth, mid-term election risks, and greater uncertainty concerning monetary tightening.

(Source: Fitch Solutions)