Market Update: November 29, 2021-COVID-19 Variant Clobbers Markets, Plus SFG News and Events
Table of Contents
Market Insights: Stocks Mixed on COVID-19, Powell
News of a new, highly virulent COVID variant triggered a market sell-off on Friday, sending stocks into negative territory for the week. The Dow Jones Industrial Average slid 1.97%, while the Standard & Poor’s 500 slumped 2.20%. The Nasdaq Composite index lost 3.52% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, dropped 1.68%.1,2,3
Investors woke up on Black Friday to reports of a mutated COVID variant, reviving fears of potential new economic restrictions. U.S. markets were not alone, as stock prices in Europe and Asia also tumbled.
Friday’s market action saw declines in economic reopening stocks, such as travel and leisure, cyclicals, financials, and energy, while some of the so-called stay-at-home stocks and pharmaceutical stocks experienced gains. Yields retreated amid a flight to safety and the potential that this turn of events may lead to a slowdown in the Fed’s bond tapering program and a delay in contemplated rate hikes. Prior to Thanksgiving the markets had been choppy, but largely trending higher for the week, while yields had moved up with the renomination of Fed Chair Powell.
President Biden announced last week that he was renominating Jerome Powell to serve another term as chairman of the Federal Reserve Bank, ending market speculation surrounding his renomination.
President Biden cited the need for stability and independence in a time of uncertainty in making his decision. While Powell’s renomination faced resistance, Senate approval appears likely. Coincident with Powell’s renomination, President Biden also nominated Lael Brainard, a member of the Federal Reserve Board of Governors, to serve as vice chair. Investors can soon expect further Fed nominations by the Biden Administration to fill vacancies created by term expirations and retirements.
This Week: Key Economic Data
Tuesday: Consumer Confidence.
Wednesday: ADP (Automated Data Processing) Employment Report. ISM (Institute for Supply Management) Manufacturing Index.
Thursday: Jobless Claims.
Friday: Employment Situation. Factory Orders.
Source: Econoday, November 26, 2021
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Tuesday: Salesforce.com, Inc. (CRM), Hewlett Packard Enterprise Company (HPE).
Wednesday: Okta, Inc. (OKTA), Snowflake, Inc. (SNOW), CrowdStrike (CRWD).
Thursday: Marvell Technology, Inc. (MRVL), Dollar General (DG), The Kroger Co. (KR), DocuSign (DOCU).
Source: Zacks, November 26, 2021
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
Do you have “Lazy Money” not earning anything?
You know that feeling of finding money in your couch cushions or your pants pocket? That instant satisfaction and surprise of feeling just a bit richer?
Well, prepare yourself for some good news – most of us have some excess cash that deserves some TLC. Perhaps it’s excess cash in the bank that’s not earning much of anything, an old 401(k) you keep meaning to check in on, or money you inherited that you haven’t gotten around to figuring out what to do with it.
Our wealth management team can help you review your Fiscal House to see where it makes the most sense to get this “lazy money” off the couch and back to work! All we need is 15-minutes (or less) of your time to share our ideas with you.
Click here to see our calendar and connect with us for a 15-minute call to discuss your lazy money strategy.
Does Your Portfolio Fit Your Retirement Lifestyle?
Most portfolios are constructed based on an individual’s investment objective, risk tolerance, and time horizon. However, as a retiree, how you choose to live in retirement may be an additional factor to consider when building your portfolio.
Click here to see our calendar and connect with us to discuss your retirement readiness!
Are You Paying Too Much in Taxes in Retirement?
For most of your working life, you’ve been in an accumulation phase — gathering and growing assets to be used to support you in your later years.
During retirement, however, you move to a different mindset as you transition into a distribution phase. Planning for the distribution phase includes a shift in perspective as you work toward preserving the assets you spent so many years building.
The key to preserving your assets is to develop a smart distribution strategy, one that accounts for many things — including the taxes you’ll owe in retirement. At SFG, we do more than just investment planning, our Stuart Retirement Review® process is comprehensive and tax planning is one of the 5-key areas we plan for!
Click here to see our calendar and connect with us for a 15-minute call with our team.
Let us help you develop your plan. Schedule to connect with us using one of the links above or give us a call at 301-345-1635.
“You can’t judge right from looking at what’s wrong.”
Protect Your Financial Safety in Case of a Natural Disaster
No matter where you live, you should be aware of possible natural disasters in your area and plan accordingly by considering the following tax tips:
- Update your emergency plan.
- Create electronic copies of all important documents.
- Document your valuables. Documenting these items ahead of time makes it easier to claim insurance and tax benefits if a disaster strikes.
- You can call the IRS at 866-562-5227 with any natural disaster-related questions. The agency can provide copies of previous tax returns, order transcripts showing most line items, and more.
- Net personal, casualty, and theft losses may be deductible if they’re attributable to a federally declared disaster.
* This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov4
The Scale Isn’t Everything: More-Comprehensive Ways to Measure Your Health
Put the scale away for a little while and try these techniques to focus on your overall health, rather than just a number:
- Keep a journal and track your healthy habits, such as working out or eating veggies with every meal. Celebrate these small victories!
- Take progress photos and compare them throughout your journey. Take your photos in the same pose, wearing the same outfit, at the same time every week (preferably in the morning before you’ve had breakfast).
- Check in on other parts of your health, such as your energy levels, skin, tummy health, and more. Developing a healthy routine does so much more for your body than just lower the number on the scale.
These are just a few of the ways you can check in with yourself on your fitness and wellness journey without the scale.
Tip adapted from Daily Burn5
What nation has current and former capital cities whose names are anagrams of each other in the English language? (Hint: It is a major player in the global economy.)
Last week’s riddle: The Cage family has a mother, father, and six sons, and each son has one sister. So, how many people are in this family? Answer: Nine. A mother, father, six brothers, and one sister, as each brother has but one sister.
Share the Wealth of Knowledge. We love being introduced!
1. The Wall Street Journal, November 26, 2021
2. The Wall Street Journal, November 26, 2021
3. The Wall Street Journal, November 26, 2021
4. IRS.gov, January 22, 2021
5. Daily Burn, June 24, 2021
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
Please consult your financial professional for additional information.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with Stuart Financial Group, J.W. Cole Advisors, Inc., nor state or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.
Copyright 2021 FMG Suite.