November 2026 Sector Allocation

In this November 2026 sector allocation report, the Fundstrat Direct Team updates its cross-asset and sector playbook following a volatile October, the U.S. midterm elections and a sharp post-election move in major equity indices. The team reviews the divergence between capitalization-weighted and equal-weighted S&P 500 performance, assesses shifts in market breadth, and examines how evolving expectations for Federal Reserve policy, September Core PCE inflation, and bond-market behavior are feeding into sector-level positioning. The report also discusses stresses in AI-linked credit markets, including CoreWeave (CRVW), and what slowing corporate debt issuance may signal for funding large-scale AI and data center buildouts.

It explains the data and technical inputs behind the current rankings, highlights changes versus October in the tactical top 3 and bottom 3 sectors, and outlines how the portfolio tilt has shifted as a result. The team also recaps performance of the prior month’s five-ETF basket and introduces a new diversified ETF list for November, explaining the balance between higher-beta exposures and lower-volatility, dividend-oriented and health care-focused vehicles. Full sector-by-sector commentary, charts, and the team’s detailed views are provided in the PDF report.

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