For the Week of November 23, 2020
The Markets
Stocks closed lower Friday amid rising coronavirus cases, increased state-level shutdowns, and fiscal stimulus developments. On Thursday, U.S. Treasury Secretary Steven Mnuchin said he would allow pandemic-relief lending programs to expire at the end of the year. For the week, the Dow fell 0.65 percent to close at 29,263.48. The S&P lost 0.73 percent to finish at 3,557.54, and the NASDAQ climbed 0.25 percent to end the week at 11,854.97.
| Returns Through 11/20/20 | 1 Week | YTD | 1 Year | 3 Year | 5 Year |
| Dow Jones Industrials (TR) | -0.65 | 4.69 | 7.68 | 10.23 | 13.12 |
| NASDAQ Composite (TR) | 0.25 | 33.21 | 40.31 | 21.64 | 19.64 |
| S&P 500 (TR) | -0.73 | 11.95 | 16.60 | 13.45 | 13.49 |
| Barclays US Agg Bond (TR) | 0.59 | 7.31 | 7.26 | 5.41 | 4.37 |
| MSCI EAFE (TR) | 1.87 | 2.06 | 5.71 | 3.50 | 5.83 |
More Bonds Than Stocks — As of June 30, the U.S. stock market was $33 trillion in size. As of that same date, the U.S. bond market was $50 trillion in size (source: Wilshire, SIFMA, BTN Research).
Bulls — 56 percent of investors surveyed as of Nov. 11 are bullish on U.S. stocks for the upcoming six months, the highest percentage recorded in this weekly survey since Jan. 3, 2018 (source: Amer. Assoc. of Individual Investors, BTN Research).
Taxes — To take deductions on Form 1040, a taxpayer can use the standard deduction or the taxpayer can itemize deductions if the latter is greater than the former. The standard deduction will be $25,100 for married couples filing jointly and $12,550 for individuals in 2021. Please consult a tax expert for details (source: IRS, BTN Research).
WEEKLY FOCUS – Safe Holiday Shopping in 2020
In a year unlike any other, holiday shopping is sure to look different as well. According to Deloitte’s 35th annual holiday shopping survey, the average household expects to spend $1,400 this season, 7 percent lower than last year. Participants cited economic worries for reigning in their overall spending and safety concerns for reducing travel and socializing outside the home. Not surprisingly, over half plan to do more online shopping.
Unfortunately, increased online shopping leads to increased online scams. Here are a few tips to follow if you’re considering a purchase off the beaten path.
While online shopping may offer fewer impulse-buying temptations than in-store experiences, it’s still important to create a disciplined budget for gift giving. From holiday spending to college funding and retirement planning, our office can be a resource for your financial needs. Call us for assistance when you need to create or update a plan for achieving your financial goals.
