The View from 5th Avenue

The View at Two – 30 November 2020

Choco Advent Calendars and Shelf Elves – Lucky for me (throat clear), my husband starts playing Bing Crosby the very minute our Halloween costumes come off. But for the rest of the (more sane) world, the acceptable time to start ALL the Christmas is tomorrow, December 1. Between now and then when anything can happen (like the Tesla inclusion into the S&P?!), stocks are suffering a bit of a post one holiday / pre another exhaustion, just slightly curtailing the furious November moves. This past month has been fueled by investors hopes over the finalization of a vaccine and slightly less concerns over the presidential transition. Fun fact: for four straight Mondays a different drug maker reported advances on vaccine trials. Conspicuous. The momentum faded today thanks to headlines claiming surging levels of infections and an MSCI reweight, though equities still remain on track for historic gains. The Dow is up nearly 12% for the month, the biggest gain since January 1987. The S&P +10% and Nasdaq +11%, aren’t far behind. And one mustn’t forget the small caps – a record for them too! After today, we have 22 trading days left for 2020 (probably more like 14 real ones). Far too early for Santa rallies and plenty of ground to cover between now and Jan 1. Gulp.

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