Week of 11/13-11/17 Indexes Finish Higher, Stock Rally Fades

The stock market came to a close on Friday with slow price action, but finishing a third winning streak for the market indexes. It was a big week for retail companies reporting earnings that came out with better-than-expected results. The most impactful factor for this week's momentum has been a positive sentiment on inflation and hope that the FED is done raising interest rates. Tuesday's economic report on consumer demand shows inflation cooled more than expected on the month over month metric. Oil and the dollar did not perform as well this week and the 10-year Treasury fell below 4.4% for the first time since September. Investors are now looking towards the outlook for the end of the year and preparing for the next economic cycle. Historically, the stock market has displayed various trends towards the end of the year, with some years proving to be more profitable than others. The stock market tends to experience gains during the final months of the year as investors become more optimistic and hopeful of the impending new year. Many attribute this to the holiday season, where spending increases in December and throughout the year-end festivities. Furthermore, end-of-year tax-loss harvesting and other year-end investment strategies can influence market trends. However, towards the end of the year, many investors withdraw from the market to avoid high taxes or for long-term planning reasons that affect the market's momentum. Therefore, it is essential to keep up-to-date with the market's current events and adjust investment strategies accordingly. The variation in stock market trends in the year-end period means there is no guarantee of how the market will perform during this period, and investors should exercise caution when making decisions.