M1 Finance Portfolio: Dividend Aristocrats 2020 - Week 21 (March 6th, 2020 - $296.43)

Week 21 - $296.43

The stock market experienced wild swings throughout the week as mixed reactions were priced in over the risk of investing during the global economic slowdown caused by the COVID-19 pandemic.

Total Report (Since October 11th, 2019)

 

Positive Performing Sectors
None

Negative Performing Sectors
1. Healthcare (-0.17%)
2. Consumer Staples (-1.51%)
3. Communication Services (-2.11%)
4. Utilities (-2.28%)
5. Information Technology (-5.98%)
6. Real Estate (-10.10%)
7. Industrials (-10.37%)
8. Materials (-11.80%)
9. Financials (-14.34%)
10. Consumer Discretionary (-17.87%)
11. Energy (-32.40%)

Weekly Report (March 6th, 2020)

Positive Performing Sectors
1. Utilities (+10.90%)
2. Consumer Staples (+5.66%)
3. Communication Services (+5.15%)
4. Real Estate (+4.38%)
5. Information Technology (+2.92%)
6. Healthcare (+2.03%)
7. Materials (+1.57%)
8. Financials (+0.16%)

Negative Performing Sectors
9. Industrials (-0.55%)
10. Consumer Discretionary (-1.88%)
11. Energy (-2.68%)

GICS Sector Performance Ratio - Balanced: From 0:11 (0.00%) to 8:3 (72.73%)

Review

The stock markets experienced one of the most wildest swings in the its history over the past two weeks, with percentages dropping over 3-4% in a given day. Although some stock prices made intermittent gains this week, selloffs continued to dominate the overall market environment. Business dependent on international trade, particularly those with supply chains in China, were the most impacted among the economic slowdown. While the stock markets may be down for past two weeks, Dividend Aristocrats outperformed the major indexes this week, coming out positive despite the high market volatility.

Companies with proven track records of high, stable profitability over the long term while consistently paying increasing dividends to shareholders not only are less volatile than the general stock market, but outperform the stock market over the long term due to the grounded fundamentals of stable, tangible growth over speculative short-term profits. This is especially true in bull-market environments. Companies that have reliable, all-round streams of income and are not totally dependent on taking on debt or gathering investments to conduct business will hold well or even outperform against those that regularly do as profit opportunities shrink and leverage becomes riskier.

Last Week's Update (February 28th, 2020)

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

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