Market Commentary – Nov Recap

Sprint to the finish: As economic data delayed by the federal government shutdown began to trickle in and the Fed continued to hold off on tapering, investors continued to drive equities to record levels. The Dow industrials hit 12 new all-time closing highs during the month, which helped push the index above 16,000. The S&P 500 set its 38th new record of the year and made history by rising above 1,800 for the first time ever. While the Nasdaq is still well below its all-time record of 5048.62, set in March 2000, it did manage to surpass 4,000; the last time that happened, Al Gore and George Bush were a month away from their first presidential debate. And if the Nasdaq were to remain at Friday’s level through the rest of the year, it would record the seventh best year in its history; if the small-cap Russell 2000 did the same, it would have had its fourth best year ever.*

All the enthusiasm for equities continued to lure investors away from bonds as the benchmark 10-year Treasury yield rose and prices fell. The price of gold continued to slide, losing $100 an ounce to end the month at $1,250, while the spot price of oil fell to roughly $93 a barrel.

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.