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Market Recap Archive

November 13, 2020

On Monday, Pfizer and partner BioNTech announced the successful results of their Phase 3 COVID-19 vaccine trial, which showed 90% effectiveness. This is wonderful news for humanity. We hope and expect that several other successful vaccines will be announced in the coming days and months. The initial stock market reaction was very positive, sending the S&P 500 to a new intraday high. The S&P 500 went on to make a closing high on a weekly basis and is up about 12% this year. The markets and the economy are not always the same thing; we expect some difficult months ahead with rising COVID-19 case counts and hospitalizations. The outlook for stocks seems to have already moved past politics and past the winter, with a focus on when we might start to enjoy a post-COVID-crisis world. Bond yields rose, with the 10-year Treasury moving as high as 0.97%, historically low but at the second-highest level seen since March. On November 17th we will have a very important webinar for business owners discussing Payroll Protection Program (PPP) loan forgiveness and the significant need for proper tax planning and treatment. If you or someone you know owns a business, please click on Events at the top of our website, www.mybuckingham.com, to register.

Ryan P. Johnson, CFA, CFP®
Director of Portfolio Management & Research

Commentary Disclosures


November 6, 2020

Stocks made gains nearly every day this week and the S&P 500 climbed over 7%, more than making up last week’s loss. Today the S&P 500 made a new weekly closing high, but remains about 2% below all-time highs set on September 2nd. The Technology sector outperformed and the Healthcare sector hit new highs as the Senate is expected to remain in Republican control, which will lead to fewer regulatory changes than were expected in a “blue wave” scenario. International stocks, gold, and even bond prices gained, but the dollar weakened this week. The strong monthly jobs report for October showed a 1% improvement in the unemployment rate, which now stands at 6.9%. The Federal Reserve announced no changes to interest rates, as expected, and their press release language was nearly unchanged from mid-September. To learn more about our financial planning subscription service, please call (937) 435-2742.

Ryan P. Johnson, CFA, CFP®
Director of Portfolio Management & Research

Commentary Disclosures


October 30, 2020

Stocks fell about 6% this week as additional fiscal stimulus was definitively put on hold and as coronavirus cases rose in the U.S. and abroad. Stock volatility rose to the highest since June, but bond yields and metals prices saw relatively small changes this week. Stock investors are concerned that additional shutdowns like the 4-week lockdown announced yesterday in France will lead to lower global economic activity. Third quarter earnings announcements are still rolling in, with about two-thirds of the S&P 500 having reported so far. While earnings are lower year-over-year, the reports are generally coming in above expectations. This week the first read on third quarter GDP was +33.1%. This was a quarter-over-quarter comparison stated at an annualized rate. Second quarter GDP, for reference, was -31.4%. Next week we expect volatility around the election, but we look forward to the monthly jobs report on Friday. To learn more about our financial planning subscription service, please call (937) 435-2742.

Ryan P. Johnson, CFA, CFP®
Director of Portfolio Management & Research

Commentary Disclosures


October 23, 2020

For the second week in a row, the bulk of the stock market’s movement for the week came on Monday. Unlike last week, this week the market declined as “significant disagreements” remained between Democrats and Republicans in fiscal stimulus talks. Stocks traded up or down several times this week on positive or negative headlines around these negotiations. It seems more and more likely that a fiscal stimulus bill will not be passed before the election and that these talks were just for posturing. Weekly jobless claims improved and continuing claims fell, again showing signs of a slowly improving jobs market. Next week we will get the first read on third quarter GDP, which should show a significantly positive number. This will be a quarter-over-quarter comparison stated at an annualized rate. Second quarter GDP, for reference, was -31%. To learn more about our financial planning subscription service, please call (937) 435-2742.

Ryan P. Johnson, CFA, CFP®
Director of Portfolio Management & Research

Commentary Disclosures