Markets outlook – November 2020

November 2020, especially after the Pfizer vaccine candidate announcement is the month of hope regarding the COVID-19 crisis.

What happened to financial markets in November 2020?

Markets outlook November 2020

Take away on November 2020

November 2020, especially after the Pfizer vaccine candidate announcement is the month of hope regarding the COVID-19 financial markets crisis. Almost all companies in major indices (SP500 Top 50, CAC40, and DAX30) registered positive returns during this month.

One may also observe a loss compensation mechanism since big winners in November 2020 are the big losers during the peak of the COVID-19 crisis (March to October 2020). CAC40 companies for example observed -20% during the 9 months of the COVID-19 crisis vs +24.9% during November 2020. The same for the Finance sector where we observed -22.6% during the 9 months of the COVID-19 crisis vs +23.5% during November 2020.

On the other hand, big winners during the peak of COVID-19 are not top performers in November 2020 but can’t be called big losers either. SP500 Top 50 companies observed +4.6% during the 9 months of the COVID-19 crisis vs +10.2% during November 2020. Retail Trade companies observed +16.2% during the 9 months of the COVID-19 crisis vs +3.9% during November 2020.

The real point is to confirm if this hope is persistent or occasional. Let’s meet up next month to answer this question.

Sources

  • Stocks quotations and sector data are from IEX Cloud.