• Equity markets experienced a dip during the month as the valuation of AI stocks was in focus

• Markets recovered and are now awaiting the last FED meeting for guidance

• In the month of November developed large cap equities advanced just 0.3%, global small caps gained 1.7% and emerging markets were down on profit-taking 2.4%.

• The trash rally observed since “liberation day» (stronger performance of fundamentally weaker companies) came to a halt.

• Artico Sustainable Emerging Market Fund is up 31.4% YTD, beating both standard and Paris-aligned benchmarks

• Valuations are historically high (particularly in the US, see page 2)

• Fiscal and monetary policies are generally supportive globally

• Company growth and profitability are robust

• All this should outweigh the negative impact from tariffs

• Investors can hence prepare for 2026 with a certain degree of optimism

• AI-valuation concerns will continue to haunt markets from time to time

• Investors should focus their equity investments on broader high-quality companies with solid growth at moderate prices

• Companies with true competitive advantage will prevail over the long-term as our recent LLM-research project confirms (contact us, if you want to hear more about it)

• The implications of a new FED chairman will be a dominant theme over the months to come

• We expect as a result a further weakening of the USD and a steepening of the yield curve

• In such an environment, equities provide for better long-term returns than bonds

• The long neglected emerging markets and global small caps seem to offer the best potential

• We recommend investing in robust investment strategies considering multiple factors and not overly dependent on a particular scenario.