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.