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The Bottom Line

● Equities were mixed in the holiday‐shortened week. The S&P 500 declined slightly, while the Nasdaq and Russell 2000 gained. It was the eighth straight weekly gain for the Russell 2000 which sits just below it’s all‐time high.
● Congress agreed on a $900 billion coronavirus relief bill but its reception was not all that cheerful as President Trump criticized its non‐virus spending and insisted direct payments be increased to $2,000 from $600.
● After 4 ½ years of off‐and‐on negotiations, the United Kingdom and European Union finally reached a breakthrough Brexit agreement, preventing tariffs and quotas that were set to take place in January.

Markets make new record highs

Markets opened the Christmas‐shortened week with a big gap down on Monday as a fast-spreading strain of coronavirus in the U.K. spurred new travel restrictions in Britain and across Europe. But stocks clawed their way out of the early hole to finish mixed for the day and for the holiday‐shortened week. The S&P 500 fell slightly, while the Nasdaq and Russell 2000 gained after setting new records. In fact, the Russell remains the standout, as the small cap index was up +1.7%. It was the Russell’s eighth consecutive gain in which it has advanced +30%, and is now +102% higher since its March 18 low. Beyond the markets, Congress passed a$900 billion coronavirus relief package, which was roughly half what was offered by the White House in the run up to the election but that was deemed insufficient at the time by Democratic congressional leadership. However, President Trump surprised many by threatening to veto the bill, calling out the amount of non‐coronavirus pork spending and demanding direct payments be bumped up to $2,000 from the bill’s $600. Overseas, U.K. and the European Union finally reached a BREXIT agreement, bringing some clarity to those markets years after Britain’s 2016 decision to leave the E.U.

Digits & Did You Knows

GO‐TO GIFT — The average shopper increased spending on gift cards by +17.9% this year compared with 2019. Gift‐givers say being unable to go into some stores made gift cards the easy option. The top‐sellers this year included Xbox, Visa and Amazon (source: The Wall Street Journal).
NOT THE TOP 10 — Ten states are likely to lose at least one congressional seat based on population estimates from the 2020 census. The once‐a‐decade count informs how the 435 seats in the House of Representatives are distributed. Alabama, California, Illinois, Michigan, Minnesota, New York, Ohio, Pennsylvania, Rhode Island and West Virginia are set to lose power in Congress (source: The Wall Street Journal).

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Source: Bloomberg. Asset‐class performance is presented by using market returns from an exchange‐traded fund (ETF) proxy that best represents its respective broad asset class. Returns shown are net of fund fees for and do not necessarily represent performance of specific mutual funds and/or exchange‐traded funds recommended by the Prime Capital Investment Advisors. The performance of those funds may be substantially different than the performance of the broad asset classes and to proxy ETFs represented here. U.S. Bonds (iShares Core U.S. Aggregate Bond ETF); High‐YieldBond(iShares iBoxx $ High Yield Corporate Bond ETF); Intl Bonds (SPDR® Bloomberg Barclays International Corporate Bond ETF); Large Growth (iShares Russell 1000 Growth ETF); Large Value (iShares Russell 1000 ValueETF);MidGrowth(iSharesRussell Mid‐CapGrowthETF);MidValue (iSharesRussell Mid‐Cap Value ETF); Small Growth (iShares Russell 2000 Growth ETF); Small Value (iShares Russell 2000 Value ETF); Intl Equity (iShares MSCI EAFE ETF); Emg Markets (iShares MSCI Emerging Markets ETF); and Real Estate (iShares U.S. Real Estate ETF). The return displayed as “Allocation” is a weighted average of the ETF proxies shown as represented by: 30% U.S. Bonds, 5% International Bonds, 5% High Yield Bonds, 10% Large Growth, 10% Large Value, 4% Mid Growth, 4%Mid Value, 2% Small Growth, 2% Small Value, 18% International Stock, 7% Emerging Markets, 3% Real Estate.

Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a
Registered Investment Adviser. PCIA doing business as Prime Capital Wealth Management
(“PCWM”) and Qualified Plan Advisors (“QPA”).
© 2020 Prime Capital Investment Advisors, 6201 College Blvd., 7th Floor, Overland Park, KS 66211.

Chris Bouffard
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