M1 Finance Portfolio: Dividend Aristocrats 2020 - Week 16 (January 31st, 2020 - $268.04)

Week 16 - $268.04

The increasing spread of the coronavirus has brought Chinese productivity down in an effort to contain the epidemic and international trade has slowed as a result.

Total Report (Since October 11th, 2019)

Positive Performing Sectors
1. Healthcare (+7.61%)
2. Utilities (+6.58%)
3. Consumer Staples (+5.14%)
4. Information Technology (+4.94%)
5. Industrials (+1.46%)
6. Financials (+1.02%)
7. Communication Services (+0.18%)

Negative Performing Sectors
8. Consumer Discretionary (-1.42%)
9. Materials (-1.64%)
10. Real Estate (-6.99%)
11. Energy (-12.60%)

Weekly Report (January 31st, 2020)

Positive Performing Sectors

1. Financials (+0.98%)

2. Utilities (+0.66%)

Negative Performing Sectors

3. Consumer Staples (-0.42%)

4. Materials (-1.51%)

5. Communication Services (-1.61%)

6. Real Estate (-1.71%)

7. Consumer Discretionary (-1.88%)

8. Healthcare (-2.48%)

9. Information Technology (-2.49%)

10. Industrials (-2.61%)

11. Energy (-3.43%)

GICS Sector Performance Ratio - Balanced: From 3:8 (27.27%) to 2:9 (18.18%)
 

Review

The effects of the coronavirus has dampened the stock market as productivity and trade slows globally as a result of efforts to contain further spread of the virus within China. This economic shutdown has had a profound impact on future earnings for this year. Many businesses rely on China to produce and supply necessary materials for their products at a cheap cost. This is a time-sensitive business, as any slowdown in the production line means the rest of productivity is stalled waiting for the required components. Less products are made, which means less products available to sell, which increases product price, which then discourages consumers from buying said product. It's a revolving wheel of losses. Delays for even a week can hamper revenue, yet this has been going on for nearly half a month. Should China continue to strictly limit production, it should be expected for stocks to drop further. However there is a case to be made that these kinds of slowdowns are temporary, and that the underlying assets of companies in the United States will not result in catastrophic collapse. Therefore this would be a good time to purchase and acquire a larger holding in these companies.

Last Week's Update (January 24th, 2020)

M1 Finance Platform Referral Link: https://m1.finance/UIl_N9XNA_CO

M1 Finance Dividend Aristocrats 2020 Pie: https://m1.finance/quB1JH2k6