November ended on a positive note for financial markets: moderating inflation and solid corporate earnings maintained a favorable environment for risk assets. After a brief correction in the middle of the month, the S&P 500 recovered ground to close the period with a marginal gain.

In equities, November's performance was marked by strong corporate results. S&P 500 companies collectively exceeded third-quarter expectations, driving earnings growth that was well above consensus. Analyst projections remain favorable for the future, with double-digit growth for the next four quarters and high returns.

In fixed income markets, US Treasury bonds showed moderate movements, with the 10-year bond rate hovering around 4.1%, reflecting a balance between expectations of rate cuts in 2026 and solid macroeconomic data. The yield curve remained relatively stable, with corporate credit continuing to perform well, particularly in the high-yield segment, given the lower perception of systemic risk.

In terms of inflation, price measurements show a gradual convergence toward targets more compatible with the Fed's objectives, while consumption and the labor market remain resilient, allowing for an orderly landing of the economy.

Globally, emerging markets performed well during the month, buoyed by the weak dollar and improved commodity prices. Gold advanced solidly, reaffirming its role as a hedge asset, while digital currencies exhibited marked volatility; in the case of Bitcoin, the correction exceeded 20% during November, erasing the gains accumulated so far this year.

In Mexico, however, the latest information suggests that economic activity stagnated toward the end of the year. GDP indicators for October showed virtually zero growth, reflecting weakness in industry and domestic consumption. Headline inflation stood at 3.6% annually, approaching the Bank of Mexico's target range; however, monetary policy minutes maintain a cautious tone in light of persistent pressures on core inflation. In this context, Banxico cut rates by 25 basis points in November, emphasizing that further moves will continue to be conditioned on sustained convergence of inflation. Finally, the exchange rate remains strong, fluctuating in a range between 18.00 and 18.50 pesos per dollar.

Everyone at Grupo Inversión wishes you a very Merry Christmas and a prosperous 2026!