Market Recap* – November

1. What happened in the markets?

Canadian stocks finished the month on the upside, with TSX rising 3.9%. Supported by strong metal prices, Materials sector had a blockbuster performance rising 14.6% and making Canadian equities one of the strongest performing markets in November.

U.S. stocks inched higher with the S&P 500 up 0.25%. A record-long government shutdown and concerns over elevated Big Tech and AI related valuations initially shook the U.S. equity markets. The worries eased after lawmakers reached a short-term funding agreement that lifted the shutdown. A rise in expectations for a December rate cut led to a strong turnaround for the S&P 500 in the last week of the month.

Canadian bonds earned 0.3% return in November. With no major economic surprises, the bond market traded in a tight range.

Money market investments continued to deliver steady gains, delivering 0.2% return for the month.

The Canadian dollar strengthened slightly against the U.S. dollar, with volatility remaining relatively low throughout the month.

2. What does it mean for Embark Funds?

Asset class	Change	Impact on cohorts
Canadian Equities	↑	Positive for younger cohorts with higher equity exposure as strong returns supported growth-oriented portfolios.
U.S. Equities	↑	Positive for younger cohorts with more equity exposure, as returns especially benefiting growth-oriented portfolios.
Bonds	↑	Positive for older cohorts focused on income and stability.
Money Market	↑	Positive especially for older cohorts. Short-term returns held firm, providing predictable income with very low volatility.
Canadian Dollar	↑ CAD	The stronger Canadian dollar slightly reduced gains from U.S. dollar assets. The overall impact was small for diversified portfolios.