For Our Clients

Educational Resources

By Bill Hornbarger, Chief Investment Officer

Three Things to Know

  • The Greek 10-year government bond, now yields less than the U.S. 10-year Treasury (0.74% and 0.90% respectively). In 2012, the Greek 10-year bond briefly yielded in excess of 33% before austerity measures and a restructuring of the country’s debt were taken. (Source: Benjamin F Edwards)
  • After touching an all-time high in February (152.5 million), non-farm payrolls fell by 22.2 million the next two months (to 130.3 million people) and at the end of October had recovered to 142.4 million. (Source: Bureau of Labor Statistics/Haver Analytics)
  • The Russell 2000 index of small cap stocks closed at a record high on Friday (11/13/20). This was the first record high since the summer of 2018. (Source: Bloomberg).

Three Things to Watch

  • Last week saw value stocks outperformed growth stocks across the size spectrum. Value has been persistently out of favor in recent years, a trend that accelerated in 2020. Market participants will closely watch to see if this continues  and if the announcement of a potential vaccine signals a renewed interest in value.
  • Retail sales for October will be released Tuesday morning. Retail sales have rebounded from the sharp contraction in March and April of this year. With COVID cases increasing at a rapid rate and new restrictions in many parts of the country, investors will be curious to see if retail activity has declined.
  • Existing home sales will be released on Thursday. Housing was very strong this summer. That strength has moderated in the fall and existing home sales are expected lower in October.
November 16, 2020 |