To re-open or not to re-open? That question, or at least the efficacy and safety of re-opening was a big topic in my house this week. As new cases continue to fall, many states are beginning to open up for business again. People are cautiously optimistic that things could improve, and you could see that in equity returns this week.

Small-Cap equities roared in the first few sessions of this holiday shortened week, but then fell back earth and finished the week in line with Large-Caps; both indices posting healthy weekly returns. Small-Caps, Value and Low-Vol were winners this week, while Momentum and Growth performed worst.
International and emerging equities also saw modest gains this week, notably with Indian stocks gaining 5+% for the week.
Next week Gap, Dick’s Sporting Goods, Broadcom, Tiffany Co, and recent gainer Zoom all report earnings. These reports should give some good insight on retail and luxury spending during Q1.
On the fixed income side, most areas bumped along and saw marginal gains, while longer dated treasuries experienced a 1+% decline for the week.

Economic news came in mostly positive this week with home sales, durable goods orders and personal income all beating expectations. The data has not been great, but we are seeing a lot of numbers that are coming in better than expectations. Let’s be clear, things are bad, just not end of the world bad.
Next week we will be looking forward to construction spending, the trade deficit, non-farm payrolls, and of course the recently very exciting initial jobless claims.
What to read this weekend
Are financial advisors making things to complicated (kitces.com)- I mean, probably
Money and Modern Life (aeon.co)
On the disparity between talent and opportunity (ourworldindata.org)
Not a read, but awesome data! (permanentequity.com)- I love data like this!
Charting Covids Impact on Retail (qz.com)
Charts for the global economy (bloomberg.com)
On the two kinds of happiness (qz.com)
Till next week, enjoy the weekend and stay safe.
Nathan