November 1, 2021
Good morning,
Welcome to November and the beginning of the two historically strongest performance months of the year – although this bull market seems to pay no homage to history. Markets overnight are acting like its still October with stocks surging and short-term yields rising. As you know, October ripped up the historical script as a weak performer with the S&P 500, the Nasdaq Comp, and Russell 2000 finishing the month +7.01%, +7.29% and +4.25% respectively.
Fed officials gather this week, and their two-day meeting (Tue-Wed) is being advertised as a big one. At this point however, it is hardly news that a tapering is in the pipeline on Wednesday, and for the time being it seems as if markets have fully discounted the probability and decided it doesn’t actually matter that much – 10yr yields are down to 1.55% from 1.70% just over a week ago.
See you Wednesday.
Be well,
Mike