Weekly Investment Update November 16, 2020

November 16, 2020

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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.   

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US stocks continued to move higher last week on the news of positive initial results from Pfizer regarding their COVID-19 vaccine.\u00a0 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.\u00a0\n

The equity markets reached its low point earlier this year on March 23 after dropping more than 30%.\u00a0 Since then, an incredible rally of 64% has taken place[1].\u00a0 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.\u00a0 Conversely, an investor who stuck with their initial investment would have approximately $113,000 today.\u00a0\n

Markets are very difficult to predict in the short-term, but in the long run the path of equities has historically been higher.\u00a0 The chart below highlights in red the largest decline of the S&P 500 index during each of the last 40 calendar years.\u00a0 Despite average declines of nearly 14%, the index provided investors with a positive return in 30 of those years.\u00a0 We encourage our clients to remain focused on their long-term goals and avoid drastic portfolio changes based on shorter-term news.”},”source”:{“query”:{“name”:””},”props”:{}}},{“type”:”image”,”props”:{“margin”:”default”,”image_svg_color”:”emphasis”,”image”:”wp-content\/uploads\/2020\/11\/SP-500-Intra-Year-Declines-vs-Calendar-Year-Returns.png”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”

\u00a0\n

Key Economic Releases This Week”}},{“type”:”image”,”props”:{“margin”:”default”,”image_svg_color”:”emphasis”,”image”:”wp-content\/uploads\/2020\/11\/11-16-2020-Key-Economic-Releases-this-Week.png”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”

Asset Class Returns”}},{“type”:”image”,”props”:{“margin”:”default”,”image_svg_color”:”emphasis”,”image”:”wp-content\/uploads\/2020\/11\/11-16-2020-Asset-Class-Returns.png”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”content”:”

Prices & Interest Rates”}},{“type”:”image”,”props”:{“margin”:”default”,”image_svg_color”:”emphasis”,”text_align”:”left”,”image”:”wp-content\/uploads\/2020\/11\/11-16-2020-Prices-Interest-Rates.png”}},{“type”:”text”,”props”:{“margin”:”default”,”column_breakpoint”:”m”,”text_size”:”small”,”content”:”

[1] Source: Morningstar”}}]}]}]},{“name”:”Disclaimer”,”type”:”section”,”props”:{“style”:”muted”,”width”:”default”,”vertical_align”:”middle”,”title_position”:”top-left”,”title_rotation”:”left”,”title_breakpoint”:”xl”,”image_position”:”center-center”,”animation_delay”:false},”children”:[{“name”:””,”type”:”row”,”props”:{“column_gap”:”large”,”row_gap”:”large”},”children”:[{“name”:””,”type”:”column”,”props”:{“image_position”:”center-center”,”media_overlay_gradient”:””,”width_medium”:”1-1″},”children”:[{“name”:””,”type”:”text”,”props”:{“margin”:””,”column_breakpoint”:”m”,”content”:”

Past performance may not be representative of future results. \u202fAll investments are subject to loss.\u202f Forecasts regarding the market or economy are subject to a wide range of possible outcomes. \u202fThe views presented in this market update may prove to be inaccurate for a variety of factors.\u202f These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data. \u202fPlease contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.\u202f\u202f\u00a0″,”text_align”:”left”,”text_size”:”small”,”text_color”:”muted”}}]}]}]}],”version”:”2.2.2″} –>

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.