Weekly Investment Update November 16, 2020

November 16, 2020

Weekly Investment Update

US stocks continued to move higher last week on the news of positive initial results from Pfizer regarding their COVID-19 vaccine.  The S&P 500 index traded up 2% for the week, pushing the year-to-date return to 13% and moving the index to near all-time highs.

The equity markets reached its low point earlier this year on March 23 after dropping more than 30%.  Since then, an incredible rally of 64% has taken place[1].  In other words, an investor who began the year with a hypothetical $100,000 in the S&P 500 would have been left with approximately $70,000 had they sold in the depths of the March decline.  Conversely, an investor who stuck with their initial investment would have approximately $113,000 today.

Markets are very difficult to predict in the short-term, but in the long run the path of equities has historically been higher.  The chart below highlights in red the largest decline of the S&P 500 index during each of the last 40 calendar years.  Despite average declines of nearly 14%, the index provided investors with a positive return in 30 of those years.  We encourage our clients to remain focused on their long-term goals and avoid drastic portfolio changes based on shorter-term news.

Key Economic Releases This Week

Asset Class Returns

Prices & Interest Rates

[1] Source: Morningstar



Past performance may not be representative of future results.  All investments are subject to loss.  Forecasts regarding the market or economy are subject to a wide range of possible outcomes.  The views presented in this market update may prove to be inaccurate for a variety of factors.  These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data.  Please contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.