SFM Observer- November 2025

Glenn Sweeney |

SFM OBSERVER

November 2025 Recap

A CONCISE REVIEW OF THE MONTH IN THE INVESTMENT MARKETS

Issued: December 3, 2025, 2025

 

The Dow closed the month of November at 47,716, gaining 154 points or 0.3% for the month. The equity markets saw a slight rebound in late November as optimism around a potential Federal Reserve interest rate cut in December.  Trading was volatile this month, particularly among high-valuation artificial intelligence stocks.  Persistent inflation concerns and stubborn Treasury yields contributed to the volatility.

 

Some interesting events from the month just passed:

 

  • The federal government shutdown-the longest in U.S. history- finally ended on November 12.  Nearly 900,000 federal employees were furloughed, and millions more worked without pay.  The shutdowns impact will filter into early 2026.
  • Adjustable rate mortgages or ARMS are making a comeback as borrowers are betting that mortgage rates will be lower in the future.  ARMS typically let you lock in a lower initial rate for the first 3 – 7 years depending on the various terms and then your mortgage resets to market rates at the end of the initial term.  30-year fixed rates have been running around 6.15% lately with ARMS offering rates around 5.5%.  If rates do not drop, you can end up with a higher rate later.  About 10% of recent loans have been buyers opting for an ARM.
  • Tesla shareholders approved a record-setting pay package for Elon Musk that could pay him as much as one trillion dollars in additional stock.  Being the richest person in the world already, does this really motivate?
  • Toyota is spending $912 million to increase production of hybrid vehicles in the U.S.  Now that the federal subsidies have ended for electric vehicles, hybrids are cheaper and avoid the lack of charging stations problem.
  • Lower income consumers are struggling and spending less at quick serve restaurants.  McDonalds has revamped their value offerings and Wendy’s announced they are closing hundreds of stores over the next year.
  • JP Morgan just moved into a new $3 billion tower on Park Avenue in Manhattan and now plan on building another massive tower on Canary Wharf in London.  The building will encompass 3 million square feet as will serve as headquarters for JP Morgan’s European operations.

 

Thank you for reading this issue of the SFM OBSERVER. If you have any comments or questions, please send us a reply. If you have a friend or associate who might be interested in the SFM OBSERVER, feel free to forward this email.

 

Until next month,

 

 

Glenn Sweeney CFA