Big November Returns
November returns were exceptional for equities. A string of positive vaccine news following the election boosted sentiment and expectations for 2021.
The Russell 2000 had its best month ever with a return of 18.3% and this followed a positive October return for the small-cap index. While small beat large, another shift occurred in the market as the S&P Value Index outperformed its growth companion in both months.
Developed equity markets, measured by EAFE, recorded a great month of November and emerging markets had positive returns in both months.
Gold was a notable laggard but performed well earlier in the year. Crude oil, the January WTI contract, rebounded dramatically following a very weak October. Soybean prices were up in both months; several commodities have perked up after years of weakness.
The AGG is the ETF tracking the Bloomberg Barclays US Aggregate Bond Index and High Yield is represented by HYG, the ETF tracking the iBoxx Liquid HY index.
For market historians, the 2nd best month for the Russell 2000 was February 2000. Also, the Dow Jones Industrial Average just recorded its best month since January 1987. A little history to ponder.