What happened to financial markets in 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.
- Stocks quotations and sector data are from IEX Cloud.