Student of the Market: November
November 2021 Highlights:
- Stocks entering a seasonal period of higher returns: November begins a seasonal period of historically higher returns for U.S stocks, typically lasting until the end of April. This six-month period has returned over 7.5% on average since 1926.
- Worst years ever for bonds: 2021 is shaping up to be the 4th worst year ever for bonds, going all the way back to 1926. But if you look at just price return, it’s only the 20th worst – pointing to a loss of income.
- Income asset classes have more downside risk: To combat low interest rates, investors may turn to higher income investments. This tends to make portfolios riskier, and these assets are seeing even higher levels of downside risk than in the past.
Incorporating models, as well as technology, into your practice can help make things more transparent and uncover key areas your clients want to discuss, like risk. Learn more at our page dedicated to markets, models, and tech below.
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