Weekly Investment Update

Electric vehicles, also referred to as “EVs”, are getting renewed interest from both consumers and investors after Rivian stock skyrocketed after going public with the sixth largest initial public offering in US history (see chart below).[1] The EV market, which has been dominated by Tesla for the past decade, is getting more crowded by the day as newer companies such as Rivian, Lucid, Lordstown, and Nikola join larger established automotive companies like Ford, General Motors, and Toyota in launching new options. Improved battery technology, extended range, lower maintenance costs, and more competitive sticker prices have all been touted as reasons that EVs will continue to gain in market share in the years to come.

Line graph depicting Tesla Inc Total Return, Rivian Automotive Inc Total Return, Lucid Group Total Return, Nikola Corp Total Return, and Lordstown Motors Corp Total Return from November 10, 2021 to November 19, 2021

Equity markets were relatively flat last week, as the MSCI ACWI (a proxy for large-cap global stocks) ended 0.2% below the previous week’s close.[2] Large US stocks fared better than non-US peers, as a resurgence of Covid-19 in Europe is straining health systems. Austria will enter a lockdown period beginning on Monday and investors are worried that more lockdowns and restrictions in the region will slow economic output.[3]

Prices & Interest Rates

Representative Index Current Year-End 2020
Crude Oil (US WTI) $80.69 $48.52
Gold $1,868 $1,893
US Dollar 95.12 89.94
2 Year Treasury 0.53% 0.13%
10 Year Treasury 1.58% 0.93%
30 Year Treasury 1.95% 1.65%
Source: Morningstar, YCharts, and US Treasury as of November 13, 2021

Asset Class Returns

Category Representative Index YTD 2021 Full Year 2020
Global Equity MSCI All-Country World 18.7% 16.3%
Global Equity MSCI All-Country World ESG Leaders 21.3% 16.0%
US Large Cap Equity  S&P 500  26.2% 18.4%
US Large Cap Equity  Dow Jones Industrial Average 19.8% 9.7%
US Small Cap Equity  Russell 2000 23.1% 20.0%
Foreign Developed Equity MSCI EAFE 12.5% 7.8%
Emerging Market Equity MSCI Emerging Markets 1.4% 18.3%
US Fixed Income Bloomberg Barclays Municipal Bond 1.1% 5.2%
US Fixed Income Bloomberg Barclays US Agg Bond -1.7% 7.5%
Global Fixed Income Bloomberg Barclays Global Agg. Bond -4.4% 9.2%
Source: YCharts as of November 13, 2021

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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