November looks like the best month for shares ever – what I’d do now

With November shaping up to be the best month for shares ever globally, now is a good moment to consider what to do next.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

With November drawing to a close, global stock markets are on a tear. If Monday’s stock market sustains the gains, it looks set to be the best month for shares globally, ever.

It is easy to look back and wish that one had known at the start of November what is common knowledge now, from the vaccine news to the US presidential election outcome. But I think it’s more useful to look forward and think about what to do next as an investor.

Look at what made November the best month for shares

Some of the stock market risers in November didn’t surprise me at all. For example, retailers like Greggs bounced sharply higher with the anticipation that a vaccine would help high street customer levels return closer to normal. Business hasn’t recovered and the current lockdown will surely weight on the company’s next results. But I never doubted that there would be good news in the end about a return to more normal life – the question was just one of when. Looking back, many of the shares which jumped in November look like they were hiding in plain sight before.

That makes me wonder – what else is likely to happen in the coming months, the only question being one of timing? For example, it’s hard to imagine that offices will be empty this time next year. That could be positive for shares in landlords like Land Securities, which still look beaten down.

Think about the drivers for November’s market performance

Stocks surged globally in November because of improved sentiment. There were some very clear drivers for that sentiment. For example, the release of the positive news about the Pfizer vaccine caused the London market to leap immediately. No wonder November is set to be the best month for shares ever.

That makes me consider what drivers will affect sentiment in the coming months, positively or negatively? At the end of December, the transition period for Brexit will end. I think the pandemic has distracted markets and the impact of Brexit is not yet fully priced into all shares. The post-transitional trade regime looks far from ready. That could add extra costs onto heavy exporters like Victrex. Looking ahead to likely drivers for market sentiment can help me consider what to do next. I like Victrex as a share but I don’t like the short-term international trading outlook for UK exporters.

What I’ll do next

The stock market globally looks set to record the best month for shares ever in November. But December is a different month. I expect that it will bring new opportunities.

I will consider my portfolio in the light of November’s strong run. But rather than reflect on past success, I will focus my attention on practical steps I can take to improve my likelihood of continued success, in December and beyond.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

christopherruane has no position in any of the shares mentioned. The Motley Fool UK has recommended Landsec and Victrex. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Wall Street sign in New York City
Investing Articles

Want to profit from the next stock market crash? 2 things to do now!

Our writer is not spending a moment trying to predict the timing of the next stock market crash. Instead, he's…

Read more »

Tesla building with tesla logo and two teslas in front
Investing Articles

Is Tesla stock a brilliant bargain lots of people don’t see?

Someone buying Tesla stock last month could already have seen it rise over 50%. What's going on -- and should…

Read more »

A senior woman and young girl help out in the greenhouse at the local farm.
Investing Articles

£10k invested in M&G shares 5 years ago would have generated a second income of…

Harvey Jones says the super-sized 9% yield from M&G shares has delivered a generous second income stream even though the…

Read more »

Close-up of British bank notes
Investing Articles

3 UK shares to consider for a 6.6%+ dividend yield

Christopher Ruane discusses a trio of blue-chip UK shares investors should consider for their commercial prospects and above-average dividend yields.

Read more »

Bearded man writing on notepad in front of computer
Investing Articles

Here’s how someone could start investing for the first time with a spare £400

It doesn't have to take huge sums to start investing. Here, Christopher Ruane outlines how someone could start with just…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

I’ve been following Warren Buffett to handle this weird 2025 stock market! Here’s how

Christopher Ruane has been using some Warren Buffett wisdom to help him navigate uncertain stock markets. Here's the approach he's…

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

£9,000 in savings? Here’s how that could earn £285 a month in passive income

Fed up of unrealistic passive income ideas? Our writer shows how putting under £10k into dividend shares now could hopefully…

Read more »

British coins and bank notes scattered on a surface
Investing Articles

I asked ChatGPT to suggest 3 UK dividend stocks for further research. Here’s what it said

Can artificial intelligence come close to the real thing in my search for long-term dividend stocks? No, but it's a…

Read more »