Key Takeaways
  • U.S. equity markets surged to all-time highs following Donald Trump's election victory, driven by optimism around deregulation and lower corporate taxes.
  • Household stock allocations reached record highs — historically a contrarian signal worth monitoring.
  • Bitcoin crossed $100,000 for the first time, fueled by expectations of a more crypto-friendly regulatory environment.
  • Year-end tax-loss harvesting and Roth conversion opportunities came into focus heading into December.

November 2024 delivered one of the more memorable market months in recent memory. Following Donald Trump's decisive presidential victory, U.S. equity markets surged to all-time highs as investors rotated into sectors expected to benefit from the incoming administration — including financials, energy, and small-cap domestic companies. The post-election rally reflected optimism around deregulation, lower corporate taxes, and a business-friendly policy environment.

The Post-Election Rally

The breadth of the November rally was notable. While large-cap technology had dominated returns for much of 2023 and early 2024, November saw a meaningful rotation into sectors that had lagged — particularly financials, energy, and domestic small caps. The Russell 2000, which tracks small-cap U.S. stocks, significantly outperformed the S&P 500 for the month as investors bet on a policy environment favorable to domestically-oriented businesses.

The deregulation thesis was a key driver. Expectations that the new administration would ease regulatory burdens on banks, energy producers, and industrials provided a strong catalyst for those sectors. Lower corporate tax expectations added further fuel to the rally.

A Note of Caution Household stock allocations reached record highs during November. Historically, extreme retail investor positioning has been a contrarian signal, though it does not necessarily predict near-term reversals in a structurally bullish environment. We encourage clients to focus on their personal asset allocation targets rather than chasing momentum.

Bitcoin Crosses $100,000

Cryptocurrency also surged dramatically in November, with Bitcoin approaching and ultimately crossing $100,000 for the first time. The crypto rally was fueled by expectations of a more favorable regulatory environment under the new administration — including speculation about a potential strategic Bitcoin reserve and more accommodative SEC posture toward crypto products.

For clients with questions about digital asset exposure in a diversified portfolio, we're happy to discuss the risks and considerations involved. Crypto assets remain highly volatile and speculative, and any allocation should be sized appropriately relative to your overall financial plan and risk tolerance.

Year-End Planning

As year-end approached, two planning opportunities came sharply into focus for many clients: tax-loss harvesting and Roth conversions.

  • Tax-loss harvesting allows you to realize losses in taxable accounts to offset capital gains elsewhere — reducing your tax bill for the year
  • Roth conversions — moving money from a traditional IRA to a Roth — can be particularly effective in years where your taxable income is lower than expected
  • Both strategies have deadlines tied to December 31 — acting early gives you time to execute properly
  • Coordination with your tax advisor is essential before executing either strategy

The Bottom Line

November was a strong month for markets, but strong months are also a good time to revisit whether your portfolio has drifted from its target allocation — and to ensure you're capturing available year-end planning opportunities before December 31. Reach out to your advisor to connect.