M1 Finance Portfolio: Dividend Aristocrats 2020 - Week 25 (April 3rd, 2020 - $288.64)

Week 25 - $288.64

After last week's positive performance, stocks slightly dropped following poor economic reports as the global economic shutdown heads into its third month.

Total Report (Since October 11th, 2019)

Positive Performing Sectors
None

Negative Performing Sectors
1. Healthcare (-11.41%)
2. Consumer Staples (-13.32%)
3. Utilities (-17.74%)
4. Information Technology (-29.01%)
5. Materials (-35.17%)
6. Communication Services (-36.27%)
7. Industrials (-40.84%)
8. Financials (-42.41%)
9. Energy (-46.48%)
10. Consumer Discretionary (-47.13%)
11. Real Estate (-62.02%)

Weekly Report (April 3rd, 2020)

Positive Performing Sectors
1. Energy (+7.72%)
2. Healthcare (+3.93%)
3. Consumer Staples (+2.06%)

Negative Performing Sectors
4. Utilities (-0.71%)
5. Information Technology (-2.28%)
6. Materials (-3.03%)
7. Financials (-7.35%)
8. Communication Services (-8.14%)
9. Industrials (-8.16%)
10. Consumer Discretionary (-9.01%)
11. Real Estate (-15.77%)

GICS Sector Performance Ratio - Balanced: From 11:0 (100.00%) to 3:8 (27.27%)

Update

United Technologies Corporation (UTX) and Raytheon Company (RTN) had closed a merger on April 3rd. The new company formed will be called Raytheon Technologies Corporation trading under the ticket symbol RTX, and all existing UTX shares in the Industrials sector will be converted to RTX shares.

Review

Stocks dipped back into the negatives this week as the quarterly economic reports showed the expected contractions experienced by the coronavirus-related shutdowns. Unemployment claims broke new records with over a staggering 6 million Americans filing from last week. Oil talks between Saudi Arabia and Russia faced delays and the US Government may be considering a bailout of the Energy Sector soon to prevent a major collapse.

Although this week faced less volatility than the previous weeks, the stock market will face greater losses in the next few weeks as shutdowns are extended and COVID-19 cases continue to climb. Businesses across all sectors are hemorrhaging liquid cash to keep operations alive with greatly-reduced income. The economy could be heading for a disastrous recession should further bailouts be necessary. Raising inflation is meant to serve as a short-term stopgap to economic shortages, not a long-term solution. Work must be done to produce goods and services and provide the resources necessary to sustain people's living. Without any additional production for a prolonged period of time, companies may see some damaging contractions in their business that may take many years to recover from, if not at all.

Last Week's Update (March 27th, 2020)

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