From Equity Research
Equity markets during November generated powerful gains as investors focused on a future where highly effective vaccines might allow a return to a more normal life. This optimism came despite increasingly dire news around the rapid acceleration in the spread of the COVID-19 case counts across the U.S. in recent days. The optimistic market outlook was reflected in the VIX Index, or “fear gauge,” which started the month at about 38 and steadily declined to end the month at just over 20. For the full month, all three major equity indexes increased strongly with the Dow Jones Industrial Average up 11.8%, the S&P 500® index up 10.8%, and the smaller cap weighted Russell 2000® increasing 18.3%.