Between the government shutdown, volatility, AI momentum, and the forthcoming end of 2025, this month provides an intriguing backdrop for our November market update.
Credent’s Chief Investment Officer, Edison Byzyka, provides a high-level overview of our Investment Management Team’s current interests and how investors can respond to the markets and economy.
Government Shutdown Stopgap
The government shutdown is a top headline. A temporary stopgap is in place and will be accompanied by the release of a backlog of economic data. As expected, our investment experts will analyze this accumulated data and watch how the stopgap impacts the markets and economy.
Because the economy and markets operate on forward-looking assessments, the uncertainty created by a lag in economic data releases could be responsible for some of the current volatility.
Even still, this volatility should not cause outsized concern.
Much-Needed Volatility
In some ways, the current volatility is needed. “Much-needed volatility” is not an oxymoron. Despite the concern it can cause, as a part of a long, healthy secular growth cycle, volatility can be an indicator of a properly functioning market.
Dangers of Chasing AI Momentum
Beyond volatility, the news is enamored by the valuation backdrop and exuberance of artificial intelligence stocks. No one wants to miss out on a good thing. As such, this coverage can propel investors to chase the momentum.
However, leaning heavily into AI is one of the worst risk management decisions we could make across portfolios. Of course, there is a place to participate in the AI story, but it is essential to be appropriately diversified to minimize risk.
Disciplined investing remains a pillar of the wise investor. For Credent, this means relying on principles that have contributed to our third-party-verified track record while making objective, measured tweaks when necessary.
What You Can & Can’t Control
As always, remember what you can and can’t control.1 You decide how you save and spend, participate in the equity market, align with a financial plan, and rely on experts.
You also control whether you stay properly informed. Next month, we will release our 2026 Outlook, reviewing the year and offering our view on the direction of the economy and markets.
In the meantime, let this November market update serve as an encouraging reminder that the best response to headlines is to rely on your plan and the professionals you’ve trusted to manage your portfolio in alignment with your goals.
To talk to a member of our team about our November market update, reach out using the form below.
Contributing sources and influences
1, The concept of “what you can and can’t control” is inspired by a historical version of J.P. Morgan Asset Management’s Guide to Retirement.