Title: The Incredible Rally in Stocks Continues

Despite a slight pullback on Monday, the major averages bounced back Tuesday and are looking to lock in their fifth consecutive winning week. The Dow and S & P 500 are on track to finish November – ending with Thursday’s close – 7% and 8.4% higher, respectively. The tech-heavy Nasdaq is pacing for nearly an 11% return for the month.

November’s Rally
November has certainly been living up to its reputation as the strongest month of the year back to 1950, exceeding its average S & P 500 gain of 1.7%, according to the Stock Traders Almanac.

Positive Catalysts for the Market
Heading into the final month of 2023, there are several positive catalysts for the market, including December’s track record as the third-best month of the year for the S & P 500 since 1950 with an average increase of 1.4%. Additionally, December includes the potential for a Santa rally in the last five trading days of the year and the first two trading days of the new year.

Trends Supporting Stocks
Several important trends are supporting stocks at the moment. Interest rates, which have been hiking since March 2022, appear to have peaked, stabilizing energy prices and largely positive third-quarter earnings reports. While stocks could take a pause or pullback in the next week or two, the overall outlook remains positive.

Holiday Shopping Season
The start of the holiday shopping season also supports the continued gains in stocks as Black Friday sales were up versus last year’s levels and e-commerce spending drove growth.

Economic Releases
The two most important economic releases, October’s personal spending and income report and November’s nonfarm payrolls report, will also help shape investor sentiment in the final weeks of the year.

Investment Strategy
The overall investment strategy remains the same, focusing on finding and sticking with a diverse set of best-in-class, profitable, and cash-generating businesses at good valuations.

In conclusion, the rally in stocks continues with overall positive catalysts and trends supporting the market. Despite the possibility of a pause or pullback, the holiday shopping season and positive economic releases are expected to contribute to the continued gains in stocks. The investment strategy remains focused on finding and sticking with high-quality businesses.