November was a big month for the stock market, signaling that Wall Street sees better things ahead for the economy in 2021. Between the coronavirus pandemic, the election, vaccine news, and where we were just nine months ago, it’s hard to believe that our stock market is breaking record highs these days. It will be interesting to see how the November rally holds as we move into December.
This month alone, The 30-stock average rose 11.8% in November, its biggest one-month gain since January 1987. Back then, the Dow jumped 13.8%. Just last week the Dow Jones Industrial Average traded and closed above 30,000 for the first time.
The Russell 2000 remained up nearly 19% for November, putting the small-cap gauge on track for its biggest monthly gain since its inception more than 40 years ago. It was far outpacing the large-cap benchmark S&P 500, which was up more than 10% and on track for its biggest monthly rise since April, while the tech-heavy Nasdaq Composite was up around 11.3%.
And while December is historically a strong month for equities, analysts state that the strength of those November gains suggests a note of caution would be in order. We will continue to monitor how the market plays out this December, but November’s strong rally proves how important it is to stick with your long-term plan. Here at Sherman Wealth, we always encourage you to drown out the noise and biases within the market and stick with your initial plan for the long-term. If you have any questions about your portfolio, please reach out to us at info@shermanwealth.com or schedule a complimentary 30-minute consultation on our site.
