NEW YORK (TheStreet) - Riskier stocks -- known as high-beta stocks -- led equities in November, a signal of positive momentum.The chart below is of PowerShares QQQ ( QQQ) over SPDR S&P 500 ( SPY). The chart shows the Nasdaq's relative strength versus the S&P 500. Investors usually favor riskier stocks when they are confident about the economy. Stable monetary policy was the main reason for stocks' strength in November. Investors realize that the Federal Reserve will likely maintain its current level of easing into 2014. The Fed seems to think that the economy isn't yet ready to operate without intervention, and Fed nominee Janet Yellen is a known policy dove who will likely keep stimulus intact next year.
Follow @macroinsights This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.