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Week of October 12, 2020 Thumbnail

Week of October 12, 2020

Salutations, friends!

We hope you are doing well and staying healthy. The economic sentiment last week was definitely more positive, and the markets embraced the risk-on trend.  Here's a look at this week's highlights:

  • All the major indices advanced meaningfully.
  • The NASDAQ and small cap stocks led the way.
  • Newsflow from Washington was received favorably.

A full recap of the week's events is linked in the below article.  Please read it at your leisure.

The markets clearly turned a corner last week, moving on from the uncertainty of a potentially indecisive November election result to the prospects of a clear and decisive result.  News that President Trump had recovered from the coronavirus triggered a tremendous amount of partisan bickering, but at least it removed a temporary source of consternation in the markets.  More important was word of renewed chances for a compromise on a stimulus bill.  Investors cheered broadly, as all 11 sectors of the S&P 500 marched higher and Treasuries sold off, lifting the yield on the 10-year to 0.78%, a four-month high.  Manufacturing data came in better than expected and employment data as tracked by the JOLTS Report was mixed.

The treatment regimen that President Trump received was apparently quite helpful, and news of other therapies coming to market was received positively.  Folks are obviously very anxious to put C-19 in the rear view mirror, but it's important to note that business confidence has been sliding in recent months as the virus continues to spread.  The volatility that we've been discussing and predicting for some time was on full display, and keeps our attention sharply focused.

Thank you for the confidence you have placed in us, as we remain committed to delivering insightful solutions to your financial needs.  Be safe and feel free to contact us with any questions or to schedule a meeting.

Very best regards,

 

FMA ADVISORY, INC.

Market Insights - October 10, 2020

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