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The Bottom Line

● Stocks got back to their winning ways with most major global equity indices advancing. The S&P 500, Dow, and Nasdaq indices were all up more than 2% and the Russell 2000 small cap index gained nearly +4%, its fourth straight weekly gain, now up +20.7% in November.
● In what seems like a routine, for three straight Mondays a promising Covid‐19 vaccine was announced; Pfizer on Nov. 9, Moderna on Nov.16, and AstraZeneca on Nov 23.
● It was a busy week for economic data, all coming between Monday and Wednesday with the Thanksgiving holiday. Markit PMIs showed strong economic activity but other measures showed downbeat expectations.

Is it Groundhog Day or Thanksgiving?

It was a Thanksgiving holiday shortened week, but many may have confused the start of it for Groundhog Day. U.S. stocks rallied big for the third consecutive Monday supported by another announcement of a positive Covid‐19 vaccine, this week by AstraZeneca. Additionally the FDA announced emergency approval for Regeneron’s therapeutic treatment that President Trump received. Despite the short week, it was a strong one for stocks. By Friday’s early close, all major global equity indices were positive. The Dow broke above 30,000 for the first time earlier in the week, and the S&P 500, Nasdaq and Russell 2000 small cap indices all closed at record closing highs. The small‐cap Russell 2000 is now up for every week in November and has gained +20.7% for the month, on pace for its best month ever with just one day left. Even with the technology‐heavy Nasdaq’s rebound, value stocks have now beaten growth stocks for the fourth straight week. Value is beating growth by +4.6% in November, the biggest month of outperformance since April 2002. Economic data was mixed with strong PMIs and housing data but weakening consumer confidence and sentiment, plus jobless claims were up for the second week.

Digits & Did You Knows

FREQUENTLY HIGH ‐ Between the 11/08/16 presidential election and the 11/03/20 presidential election, the S&P 500 set 133 record closing highs over 1,003 trading days. That’s equal to a new record closing high occurring once every 1 ½ weeks (source: BTN Research).

HISTORICALLY LOW ‐ The yield on the 10‐year U.S. Treasury note closed Friday 11/27/2020 at 0.84%, its 176th consecutive trading day of closing below 1%, i.e., occurring every trading day since 3/19/2020. The yield dropped below 1% for the first time ever on 3/03/2020. 10‐year notes have been traded in the U.S. since 1790, i.e., 230 years of trading (source: Treasury Department, BTN Research).

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Source: Bloomberg. Asset‐class performance is presented by using market returns from an exchange‐traded fund (ETF) proxy that best represents its respective broad asset class. Returns shown are net of fund fees for and do not necessarily represent performance of specific mutual funds and/or exchange‐traded funds recommended by the Prime Capital Investment Advisors. The performance of those funds may be substantially different than the performance of the broad asset classes and to proxy ETFs represented here. U.S. Bonds (iShares Core U.S. Aggregate Bond ETF); High‐YieldBond(iShares iBoxx $ High Yield Corporate Bond ETF); Intl Bonds (SPDR® Bloomberg Barclays International Corporate Bond ETF); Large Growth (iShares Russell 1000 Growth ETF); Large Value (iShares Russell 1000 ValueETF);MidGrowth(iSharesRussell Mid‐CapGrowthETF);MidValue (iSharesRussell Mid‐Cap Value ETF); Small Growth (iShares Russell 2000 Growth ETF); Small Value (iShares Russell 2000 Value ETF); Intl Equity (iShares MSCI EAFE ETF); Emg Markets (iShares MSCI Emerging Markets ETF); and Real Estate (iShares U.S. Real Estate ETF). The return displayed as “Allocation” is a weighted average of the ETF proxies shown as represented by: 30% U.S. Bonds, 5% International Bonds, 5% High Yield Bonds, 10% Large Growth, 10% Large Value, 4% Mid Growth, 4%Mid Value, 2% Small Growth, 2% Small Value, 18% International Stock, 7% Emerging Markets, 3% Real Estate.

Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a
Registered Investment Adviser. PCIA doing business as Prime Capital Wealth Management
(“PCWM”) and Qualified Plan Advisors (“QPA”).
© 2020 Prime Capital Investment Advisors, 6201 College Blvd., 7th Floor, Overland Park, KS 66211.

Chris Bouffard
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