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Despite a downturn on the last day of the month, stocks rebounded impressively in November from a moribund performance in October. Several of the benchmark indexes reached record highs during November as investors shifted slightly from tech stocks to shares influenced by economic cycles.

While the presidential election, COVID-19, and additional fiscal stimulus dominated the news throughout the month, stocks seemed immune. Instead, investors pinned their hopes on the development of a virus vaccine and a quick economic recovery.

Gross domestic product rebounded in the third quarter and job growth continued. Personal income and consumer spending continued to climb. Inflation remained muted and below the Federal Reserve’s 2.0% target. Sales of existing homes advanced, while new home sales lagged.

did you know?

Stock Market Facts

  • Only 55% of Americans own stocks according to a Gallup survey taken in April.1
  • Apple was the first stock to hit 1T in market capitalization.2
  • It took Apple 42 years after going public to reach 1T, but then doubled in value to 2T in only 2 years.2
  • Amazon’s Jeff Bezos originally wanted to name the giant Cadabra.3
  • Historically September is the worst month for the stock market.4


1 2 NY Times 3 Business Insider 4 Investopedia

bright ideas
Putting 2020 In the Rearview Mirror
Lessons Learned from a Challenging Year

The start of a new decade brought hope and inspiration for many, only to be shaken by what can only be summarized as unprecedented, including a global pandemic, social unrest, and a contentious election. And now, with 2020 nearly behind us, we can look forward to good things to come in the New Year, feeling stronger and wiser with the lessons we have learned along the way:

#1 Technology for Everyone

We were all forced to adapt quickly in March as daily life became confined to our homes. Zoom is now part of the American lexicon, and it’s here to stay. From the youngest students to the oldest clients, we were all pushed to pivot and accelerate into the digital age. As advisors, technology has only made us more efficient and productive, and even when COVID subsides, technology will remain a staple of our daily interactions with our clients.

#2 The Federal Reserve Playbook

In Q1, equities saw the fastest decline in market history. All fixed-income instruments were also hit with severe price dislocation due to a global liquidity crunch. Even US Treasuries—which are widely considered the most stable and liquid security in existence—saw unprecedented volatility. With lessons learned from the 2008 crisis, the Fed took action to steady the markets, quickly leading to resumed confidence and historic market high rebounds.

#3 Top 5 companies driving the market recovery

A handful of companies have changed the way we live, and during the pandemic, companies such as Amazon have exponentially benefited from our socially-distanced state. While, in our opinion, these companies are overvalued, Apple, Microsoft, Facebook, Google, and Amazon, are generating profits—unlike the dot com boom of 2000, when stocks were soaring on companies that were not profitable.

2021 Events to Come

Looming events in 2021 are poised to create continued volatility in the markets, including Brexit, a new COVID strain, and vaccine releases—just to name a few. While the outcome of the senate races in Georgia are still to be decided, the markets prefer a divided Congress, as history has shown us. A divided Congress means we are less likely to see large policy swings in either direction. The success of the vaccine rollout will also be a factor to watch. A smooth process with no disruptions in supply or adverse medical effects will continue to raise confidence and hope that even Main Street business will begin to thrive again.

Our Successes

Throughout all this uncertainty, some things have remained steadfast, including Beacon’s investment philosophy. Our Vantage portfolios held up extremely well during the pandemic and worked as they were designed to do—minimizing losses, maximizing diversification and maintaining mechanical execution to eliminate emotions throughout this year’s extremes. Our stop loss strategy protected clients on the downside, limiting losses in our mission to deliver consistent returns.

Our successes have been recognized with several honors, including being named to:

From all of us at Beacon, thank you for your continued trust and belief in us and our approach. Thank you for continuing to serve your clients, helping them navigate the many uncertainties this year has presented with confidence. We look forward to a happy and prosperous New Year together.

As always, please reach out to us at Beacon HQ to let us know as we can be of help. For additional ideas or recommendations on timely client conversations, feel free to contact your wholesaler or visit our Advisor Toolbox for a number of great resources.

beacon news

“Clients of advisors who use Beacon portfolios know that they’ll ride out a truly bad bear market in relative safety ‘Those are times when we step in and trigger a stop loss,’ Beacon CEO Chris Cook says. ‘When that portfolio drops by 10%, we will step in and protect the client, get them out of their equity investments. Then we go over to bonds, almost exclusively Treasuries and, essentially, we hide.’”

“Beacon Capital offers Advisors Service for the Elite” – The Wealth Advisor

Be sure to visit Beacon’s News & Press page for the latest credibility pieces to share with your clients and prospects, and follow Beacon on LinkedIn for the latest updates as they happen.


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For Advisor Use Only, Not to Be Used With Clients

The GIPS Compliant Presentations for our Vantage portfolios can be obtained by clicking on the link below.  If you would like the Compliant Presentations to be emailed directly via PDF file or if you would like to receive a copy of Beacon’s Composite Descriptions; please respond to this email or contact Beacon at 937-439-9093.

BCM 2018 Compliant Presentations

Beacon Capital Management, Inc. is a registered investment adviser with the Securities and Exchange Commission. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance is not indicative of future performance.

Additional information about Beacon Capital Management is also available on the SEC’s website at under CRD number 120641. Beacon Capital Management only transacts business in states where it is properly registered, notice filed, or excluded or exempted from registration or notice filing requirements.

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Beacon Capital Management

7777 Washington Village Drive, Suite 280, Dayton, OH 45459

P: 866.439.9093 | F: 937.424.4825