Profit-taking: Traders sell after October gains to lock in profits. Year-end adjustments: Funds and institutions rebalance their portfolios before December. Economic news: Inflation, interest rates, and global reports can trigger drops. Tax-loss selling: Some investors sell losing positions to reduce taxes. Low liquidity: Fewer traders are active before holidays, so prices swing more. Bottom line: November is often a month of selling and smaller trading activity, which can make markets drop.
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