Two People Looking Over Stocks

Weekly Market Commentary November 5, 2018

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

After a rough October, the S&P 500 went into rally mode last week. Positive rumors on trade and a general recognition that the investing environment remains positive boosted stocks. The S&P 500 soared 2.4%. Global stocks rose, too, pushing the MSCI ACWI 3.1% higher. The good news in stocks, along with healthy job growth, pushed the Bloomberg BarCap Aggregate Bond Index 0.7% lower.

October was a difficult month. Stocks fell sharply, and most other asset classes also dropped. The S&P 500 fell 6.9%, its worst performance since 2011. Global stocks dropped 7.6%. The Aggregate Bond Index and Bloomberg Commodity Index also fell. The brightest spots were consumer staple stocks, utilities, and Brazil’s market. Consumer staple stocks and utilities are often less volatile than other sectors, and Brazil benefitted from the election of a more market-friendly president.

While last week was positive, we encourage investors to prepare for more volatility ahead. Volatility often takes time to wear off. The elections on Tuesday may create some short-term volatility, but if the results are as expected, i.e., Democrats taking the House and Republicans retaining the Senate, we believe the outcome is already reflected in the markets.

Key Points for the Week

  • Global stocks rallied last week after a decline in October.
  • October was the worst month for the S&P 500 since September 2011.
  • U.S. hiring and wage growth was strong last month.


Employment data for October show the U.S. economy continues to hum along. The economy produced 250,000 new jobs, beating expectations by a wide margin. October’s growth reflects a bounce back from the negative effects of hurricanes on the September data.

Unemployment held steady at 3.7% as additional workers entered or reentered the labor force. Wages increased by 3.1%, which was the first time wages rose by 3% since 2009. The strong data points were a mixed blessing for investors. The data show the economy is strong, but that increases the likelihood the Federal Reserve will raise interest rates.

Fun Story

A girl and her wheelchair became the ‘Notorious RBG’ for Halloween

Julia Talbot, a 9-year-old girl from New Jersey, had one of the best Halloween costumes this year. Julia has microcephaly, a condition that causes learning disabilities and has confined her to a wheelchair. But every year, her mother picks a positive female role model and designs a costume that incorporates her wheelchair. This year she decided on U.S. Supreme Court Justice Ruth Bader Ginsburg and turned Julia’s wheelchair into the justice’s bench. Julia’s costume got lots of attention, which her mother says she enjoys.

facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.


Market Commentary: Moderating Inflation, Ebbing Political Uncertainty Among Reasons for Hope in the Face of a Tough Market

The Personal Consumption Expenditure (PCE) Price Index increased 0.6% in May, after rising only 0.2% in April. PCE inflation is an alternative inflation measure to the Consumer Price Index (CPI), which is released earlier. The two measures both show inflation to be very high, but the CPI in …

Market Commentary: S&P 500 Rallies 6.5%, Lifting Market Above Bear Level

The S&P 500 spent only a short time below the 20%-decline threshold, before jumping back above it last week. U.S. large-cap stocks rallied 6.5% based on optimism that inflationary pressures are starting to respond to higher interest rates.

Market Commentary: Fed Raises Rates by 0.75%, Market Moves Into Bear Territory

The S&P 500 dropped 5.7% last week and is now 22.3% off its peak. This decline pushed the index of large-cap U.S. stocks into a bear market, which is defined as a 20% or greater drop from its peak. Volatility remained elevated, and the S&P 500 has now moved by 1% or more 60 times …

Special Market Commentary: S&P 500 Slips Into a Bear Market. Now What?

Fueled by inflation readings that have remained stubbornly elevated, the stock market, measured as the S&P 500 Index, entered bear market territory at market close on June 13, 2022.  A bear market represents a decline in equity values by more than 20%.
1 2 3 68 69 70
Two People Looking Over Stocks

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation

TweetsFollow Us