The Northern Star Newsletter 11/18/20 - Vaccine Triggers Rally
Message from Jon
Where We Are and What We Know
RESCHEDULED TO DECEMBER 16TH AT 12PM
This past week has been interesting. We are seemingly seeing a rotation out of Megatech and the stay-at-home investments and into the once recently shunned investments such as small cap value, energy and other areas. This will likely continue while Wall Street sorts out the Vaccine news and how much longer the case counts will rise before receding and if the future of back to normal is closer or farther away than they think it is.
We are still anticipating a rebalance at year's end for many managers on Wall Street to what they perceive will be a radically different mixture of investments as their thoughts point them to quite a different 2021 than was 2020. 2020 was, or should I say, has been anything but a pleasant year. We are not quite out of the woods yet, but at present, we are in a much different circumstance than we were just a short 30 days ago for sure.
It is hard to tell where in the economic cycle we are currently since COVID and the economic impact has altered this quite dramatically. We will have to wait and see.
We have seen that the VIX remains below 25 but still above 20, indicating a market condition that is still volatile but settling down considerably since 30+ days ago. We are expecting the markets to begin to look past the election tensions into 2021. NASDAQ is still seeing a rotation trade away from Big Tech and into what areas are expected to fare well in the coming months and quarters and potentially years. For how much longer, is anybody's guess.1
Till we speak again, enjoy your week and prep for Thanksgiving coming up...I know ours will be much different this year than past years!
Vaccine Triggers Rally
WEEKLY UPDATE - NOVEMBER 16, 2020
The Week on Wall StreetNews of a COVID-19 vaccine ignited a rally in economically sensitive stocks and a broad retreat in technology companies last week, though enthusiasm was tempered by reports of rising new infections and fresh lockdowns. The Dow Jones Industrial Average surged 4.08%, while the Standard & Poor's 500 rose 2.16%. The Nasdaq Composite index fell 0.55% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, jumped 4.01%.