A November to Remember

Monthly Market Snapshot: November 2020


Globally, stocks surged in November as positive vaccine news and fading U.S. political uncertainty. In the United States, the S&P 500 soared 10.8% while the Dow Jones jumped 11.8%. The tech-heavy NASDAQ rose 11.8%. European shares ripped 21.2% higher as the number of new COVID-19 cases in the region seemingly plateaued and restrictions looked set to ease. The 10-year U.S. Treasury yield remained little changed at 0.84%.

Vaccine developments have bolstered confidence that there is a light at the end of the tunnel. Barring an unexpected setback, a broad distribution of vaccines in 2021 should help the global economy to more fully recover. Combined with the a base case of a divided U.S. government, this boosted risk assets significantly. Some of next year’s returns might have been pulled forward.

Citi Private Bank’s Global Investment Committee maintains an overweight on global equities, particularly on non-U.S. large cap shares (Japan, Europe, and the UK) and small-cap shares. The Committee maintains an underweight on global fixed income, particularly European and Japanese sovereign bonds and short-duration U.S. Treasuries. The GIC is now neutral on emerging market debt.