Weekly Investment Update

Equity markets rallied again last week, as investors applauded a host of positive news throughout the week. The much-awaited Federal Reserve meeting wrapped up and while they shared plans to gradually taper their bond buying program between now and mid-2022, Fed President Jerome Powell indicated they are in no hurry to begin raising rates.[1] Markets reacted favorably to Powell’s patient messaging.

In addition, the US payroll report issued Friday surprised to the upside with 531,000 new jobs added last month, pushing the unemployment rate down to 4.6% (see graph below). That result easily bested economist estimates, which projected growth of 450,000 jobs.[2] Not surprisingly, nearly all major equity index posted positive returns for the week based on the news. The S&P 500 (a proxy for large-cap US stocks) was up 2% for the week and the MSCI ACWI index (a proxy for global large-cap stocks) climbed 1.6%.[3]

Line graph depicting US Unemployment Rate from 2000 to 2021

Lastly, there was positive news on the pandemic front, as well. Pharmaceutical company Pfizer released clinical trial results for their Covid pill, reporting a reduction in deaths and hospitalizations in high-risk patients by 89%. The company plans to file for emergency FDA approval soon, and, if approved, the treatment “would be another tool in our toolbox to protect people”, stated President Joe Biden.[4]

Prices & Interest Rates

Representative Index Current Year-End 2020
Crude Oil (US WTI) $81.17 $48.52
Gold $1,820 $1,893
US Dollar 94.22 89.94
2 Year Treasury 0.39% 0.13%
10 Year Treasury 1.45% 0.93%
30 Year Treasury 1.87% 1.65%
Source: Morningstar, YCharts, and US Treasury as of November 6, 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 21.6% 16.0%
US Large Cap Equity  S&P 500  26.6% 18.4%
US Large Cap Equity  Dow Jones Industrial Average 20.5% 9.7%
US Small Cap Equity  Russell 2000 24.4% 20.0%
Foreign Developed Equity MSCI EAFE 12.8% 7.8%
Emerging Market Equity MSCI Emerging Markets -0.3% 18.3%
US Fixed Income Bloomberg Barclays Municipal Bond 1.0% 5.2%
US Fixed Income Bloomberg Barclays US Agg Bond -1.0% 7.5%
Global Fixed Income Bloomberg Barclays Global Agg. Bond -3.6% 9.2%
Source: YCharts as of November 6, 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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