Over a year ago, I examined the yield opportunities available to investors seeking returns, and the findings were quite disappointing in comparison to historical averages. So how do the current yield offerings measure up? Yields on government bonds have seen a significant decline, which would typically suggest even scarcer options. Surprisingly, the average trailing yield has actually increased for a diversified mix of the major asset classes.
Today’s stimulus negotiations appear to be reaching a critical point: BBG
The Supreme Court has ruled that Pennsylvania may count mail-in ballots received after Election Day: CNN
The final presidential debate scheduled for Thursday will feature muted microphones: CNBC
The TSA reported screening over 1 million air travelers, the highest number since March: NPR
California will assess FDA-approved COVID-19 vaccines before distribution: AXIOS
Are UK-EU Brexit talks finally concluding? BBC
The oil industry is focusing on mergers and acquisitions for survival amidst the pandemic: NYT
US homebuilder confidence surged to a new record high in October: HM
While most sectors of the major asset classes experienced a downturn last week, US stocks and bonds managed to secure slight gains for the trading week ending Friday, October 16, according to a variety of exchange-traded funds.
China has announced it might apprehend Americans in response to U.S. legal actions: WSJ
The decision on additional U.S. stimulus legislation is expected by Tuesday: BBG
The arms embargo on Iran expired recently: Politico
Pfizer has begun manufacturing its COVID-19 vaccine in anticipation of approval: TOI
There’s a growing hesitance among Americans to receive the vaccine as soon as it becomes available: STAT
Foreign investments in Asian bonds surged in September: Reuters
China’s GDP saw a 4.9% growth rate year-on-year in Q3: CNBC
U.S. consumer sentiment has risen but remains significantly lower than pre-pandemic levels: MW
In September, U.S. industrial output decreased—a first decline since April: CNBC
Conversely, U.S. retail spending growth accelerated in September: MW
Jay W. Richards, et al.
Summary via publisher (Regnery)
In an unprecedented event, the world voluntarily shut down due to a fear of an unknown virus, COVID-19. Governments, along with the support of many citizens, mandated the closure of countless small businesses, many permanently shut their doors. Educational institutions transitioned to remote learning. Places of worship canceled services. “Social distancing” rapidly became a widespread norm. Social media saw a surge in moral superiority. As the world prepares to reopen, what will life be like in a post-pandemic landscape, and can it ever return to how it was?
No Way But Up? The U.S. stock market continues to defy bearish expectations, with shares rising for the third consecutive week. Vanguard Total U.S. Stock Market (VTI) achieved a modest 0.1% increase for the trading week ending October 16, bringing it to a record close according to the weekend numbers. (As of today, VTI remains 1.6% below its peak closing price from September 2.)
Does Joining the S&P 500 Index Hurt Firms?
Benjamin Bennett (Tulane University), et al.
July 20, 2020
This study examines the impact of joining the S&P 500 index between 1997 and 2017. It has been found that the positive stock price reaction associated with index inclusion has diminished, and now the long-term effects appear to be negative. Inclusion reduces stock price transparency and adversely affects certain governance aspects. Companies included in the index often align their compensation, investment, and financial strategies more closely with index peers. As a result, return on assets declines after inclusion without evidence of competitive impact.
The chief economist of the World Bank warns that the pandemic could escalate into a significant economic crisis: BBG
A global study finds that remdesivir does not prevent COVID-19 deaths: CNN
Kamala Harris cancels campaign trips after two campaign staffers test positive for COVID-19: USAT
Factors such as fatigue, colder weather, and relaxed restrictions contribute to a resurgence of COVID-19 in the U.S.: WSJ
A record 17 million Americans have already voted early: AP
Veteran investor Mark Mobius reflects on potential market risks surrounding the U.S. election: CNBC
The Philadelphia Fed Manufacturing Index indicates growth acceleration in October: PF
The New York Fed Manufacturing Index shows a slowdown in expansion for October: NYF
U.S. jobless claims rose last week, reaching the highest levels since mid-August: CNBC
Analysts at Citigroup believe that the chances are increasing for a resurgence of the value risk factor, which has lagged behind growth stock equivalents in recent years. However, the future remains uncertain, as market trends are notoriously unpredictable. It’s perhaps unsurprising that many predictions over the past years have claimed that value stocks are on the verge of a turnaround, only to see growth remain dominant. Nevertheless, this time might be different.
Recent surveys indicate that half of Americans are hesitant about taking a new COVID-19 vaccine: WSJ
Europe is facing a resurgence of COVID-19 cases: CNBC
In Thailand, large gatherings are being banned due to ongoing pro-democracy protests: CNN
China’s consumer inflation has eased to its slowest rate in 19 months: Reuters
There has been unprecedented interest in China’s direct bond offerings to U.S. investors: FT
The International Energy Agency forecasts that global oil demand will peak by 2030: MW
Mexican farmers have confronted soldiers, seizing a dam in a dispute over U.S.-directed water: NYT
Wall Street trading has spurred bank earnings, even as Main Street operations struggle: NYT
Citigroup predicts that long-waiting value stocks may finally shine following the election: BBG
