Market Recap
November 8th, 2021
Markets
Markets rallied on renewed risk-on sentiment following relatively dovish Fed policy announcement, strong earning results and healthy economic data. The US small-mid cap indices (4.0-6.5%) significantly outperformed their large-cap (1.4-3.1%) counterparts. The VIX (1.4%) edged higher
Sectors
Growth outperformed value. Consumer discretionary (5.0%) continued to lead for the second consecutive week, on an additional +10% rally to TSLA. Healthcare (0.7%) and financials (0.6%) were the only sectors to finish in red
Rates
Yields plunged following the Fed’s mild tapering announcement, alleviating fears of abrupt tightening. The tapering will take place later this month, and is expected to end by mid-2022. The Fed continues to view inflation as “transitory” and expects a further improvement in the labor market before raising rates. The MOVE index (11.3%) plunged
Commodities & FX
Oil (2.8%) edged lower as the US hinted at a possibility to release strategic petroleum reserves. Gold (2.7%) and silver (1.2%) rose, while the USD (0.1%) remained generally muted vs. major currencies basket
Last Week's Headlines
Our Favorite Charts
US Supply Chain Stress Tracker
Source: Oxford Economics, Haver Analytics
Ticking Bomb: Working-Age Population
Source: UN
Market Performance
Disclaimer
This document is intended for informational purposes only and does not constitute an offer, recommendation, advice or invitation to enter into any transaction or investment, including but not limited to the purchase and/or sale and/or holding of securities and/or financial assets described herein. Analysis presented herein is based on information provided by external sources believed to be reliable, and assumptions which may change or not materialize. Levy Heritage did not independently verify the information and does not attest to its accuracy. Levy Heritage assumes no responsibility for errors or omissions in this document. Past performance is no guarantee of future results. Each investor has different goals and therefore should seek further personalized professional advice in relation to any investment which will take into account the investor’s specific data, circumstances and needs. Each investment involves risks and cannot be given a guarantee that the investment objectives or return on investment will be achieved, in full or in part. Levy Heritage does not provide legal or tax advice, and recommends that all people considering such advice consult with independent legal, tax and other relevant professional advisors in their countries of origin or residence. The information contained in this document is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed. Levy Heritage and/or its affiliated companies and/or its shareholders and/or employees shall not bear any responsibility for any damage and/or loss caused by the use of the enclosed information.
