Stocks Advance on Optimism for Selected Treasury Secretary; Bonds Rally Sharply

Good morning, and welcome to December already.  We hope that you and your family had a wonderful Thanksgiving.

The Dow (+1.4%), NASDAQ (+1.1%), and S&P 500 (+1.1%) finished fairly strong in a holiday-shortened week.  Meanwhile, taxable bonds rallied sharply, gaining 1.4% and tax-free municipal bonds gained 0.8%.  The 10-year Treasury yield fell a full 0.25%, ending the week at 4.17%.

The Fed-favored inflation gauge – PCE – reported that inflations remained below 3%.  While the Fed is still seeking PCE to fall to 2%, its trend has been favorable, with housing costs remain sticky.  The Institute of Supply Management (ISM) Manufacturing report was also released and demonstrated that business spending remains cautious, which can be expected in an election year when there is uncertainty regarding future government policies with a new administration.  Lastly and most importantly, both the stock and bond markets applauded the selection of Scott Bessent as the Treasury Secretary.  Mr. Bessent has recently been vocal about wanting to address the national deficit, which captured the hearts of investors.

As we enter the final month of the year, I wanted to share a chart showing that December is the best month of the year, as measured by the percentage of times (70%) that the markets were up for that month.  Let’s hope for a repeat of history.  I like those odds!

Have a great day and terrific week!

^{Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.}

^{The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.}