Market Recap: November 2021

Market commentary
- Economic recovery slowed more than expected, primarily due to global supply chain issues
- CPI inflation is running above 5% over the last year, well above the Fed’s target
- Unemployment rate fell below 5% as labor force participation rates remain low
- $1 trillion infrastructure bill is delayed as political crosscurrents collide
Select economic and market data
Statistic (monthly unless noted) |
Current |
Previous |
---|---|---|
U.S. GDP (quarterly) | 2.1% | 6.7% |
Consumer Confidence | 109.5 | 111.6 |
Consumer Price Index | 0.9% | 0.4% |
ISM Manufacturing | 61.1 | 60.8 |
Unemployment Rate | 4.6% | 4.8% |
2-Year Treasury Yield | 0.57% | 0.50% |
10-Year Treasury Yield | 1.45% | 1.56% |
Equities
- Late-month volatility related to the COVID variant left most major market averages with a small decline for November
- Large-cap stocks were the best relative performers, with growth stocks continuing to outperform value
- International stocks fell in the 4%-5% range, again trailing their domestic counterparts
Fixed income
- A late-month drop in yields left the bond market with relatively flat returns for the month as the yield curve flattened
- Fed signaled a reduction in asset purchases will commence in coming months
- High-yield bonds have provided positive returns for the year-to-date period
Strategic outlook
- Neutrally positioned on equities, while favoring international over domestic for long-term returns
- Finding value in select domestic equities while trimming outsized “growth” exposure
- Maintaining shorter-duration fixed income structure as low-yield environment continues
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