Source: US Dept. of Treasury End of Day
After suffering through a dispiriting month, investors looked to November with hopeful eyes. So far, things look mildly promising, as a powerful three-day rally more than overshadowed a modest setback in stock prices on Friday. Thanks to the modest rebound for the week as a whole, concerns about the wealth effect on the economy (more than $2 trillion in U.S. equity value was wiped out last month) or a possible Fed response to a potential market correction have subsided. As usual, pundits with 20-20 hindsight are offering a litany of explanations for the turnaround in stock prices, including favorable earnings reports for the third quarter and lessened fears of a trade war after President Trump on Thursday stated he had a positive conversation with President Xi of China. Unfortunately, that upbeat news of a possible deal was rescinded by the administration on Friday, which contributed to the market sell-off at the end the week.
