Week 26 - $357.05
The stock market rallied for the entire week as news of new COVID-19 cases begin to decline and the first wave of stimulus checks begin to arrive.
Total Report (Since October 11th, 2019)
Positive Performing Sectors
1. Healthcare (+1.37%)
Negative Performing Sectors
2. Utilities (-2.24%)
3. Consumer Staples (-4.65%)
4. Materials (-12.71%)
5. Information Technology (-15.51%)
6. Industrials (-19.16%)
7. Communication Services (-19.48%)
8. Financials (-22.29%)
9. Consumer Discretionary (-24.35%)
10. Real Estate (-30.41%)
11. Energy (-34.01%)
1. Healthcare (+1.37%)
Negative Performing Sectors
2. Utilities (-2.24%)
3. Consumer Staples (-4.65%)
4. Materials (-12.71%)
5. Information Technology (-15.51%)
6. Industrials (-19.16%)
7. Communication Services (-19.48%)
8. Financials (-22.29%)
9. Consumer Discretionary (-24.35%)
10. Real Estate (-30.41%)
11. Energy (-34.01%)
Weekly Report (April 10th, 2020)
Positive Performing Sectors
1. Real Estate (+27.28%)
2. Consumer Discretionary (+15.93%)
3. Materials (+15.50%)
4. Financials (+14.19%)
5. Utilities (+10.24%)
6. Industrials (+9.78%)
7. Communication Services (+8.71%)
8. Energy (+8.61%)
9. Healthcare (+8.54%)
10. Information Technology (+8.01%)
11. Consumer Staples (+6.53%)
Negative Performing Sectors
None
1. Real Estate (+27.28%)
2. Consumer Discretionary (+15.93%)
3. Materials (+15.50%)
4. Financials (+14.19%)
5. Utilities (+10.24%)
6. Industrials (+9.78%)
7. Communication Services (+8.71%)
8. Energy (+8.61%)
9. Healthcare (+8.54%)
10. Information Technology (+8.01%)
11. Consumer Staples (+6.53%)
Negative Performing Sectors
None
GICS Sector Performance Ratio - Balanced: From 3:8 (27.27%) to 11:0 (100.00%)
Review
Stocks experienced major gains across a shortened trading week, with investors exuberant over COVID-19 cases appearing to level out and talks of reopening the US economy start to materialize. This would mark the second week during the bear market in which every sector has performed positively despite worsening economic indicators such as the increased unemployment numbers and reduced quarterly earnings.
Heightened sentiments are likely due to not only the lessened impact of the COVID-19 pandemic in the United States, but also to the fiscal and monetary policies of the US government and the Federal Reserve in issuing virtually limitless cash and credit to support businesses struggling during the nationwide shutdowns. This has also contributed to the idea that the US government will go to any lengths to bail out major corporations at any cost to keep an economic ripple effect from occurring, even if the company's quality had deteriorated long before the pandemic crisis had come to fruition. The government has made it clear that both protecting the life and safety of the people as well as the economic stability of the nation are a first priority. It is willing to exceed its normal 2% inflation per year to do so.
Yet it is forgotten that an economy does not truly revolve around money, but the resources it contains. Although demand will skyrocket once economic activity resumes, the lost time in production and lessened supplies could result in a protracted bear market, especially if the millions of unemployed are unable to find work soon.
Heightened sentiments are likely due to not only the lessened impact of the COVID-19 pandemic in the United States, but also to the fiscal and monetary policies of the US government and the Federal Reserve in issuing virtually limitless cash and credit to support businesses struggling during the nationwide shutdowns. This has also contributed to the idea that the US government will go to any lengths to bail out major corporations at any cost to keep an economic ripple effect from occurring, even if the company's quality had deteriorated long before the pandemic crisis had come to fruition. The government has made it clear that both protecting the life and safety of the people as well as the economic stability of the nation are a first priority. It is willing to exceed its normal 2% inflation per year to do so.
Yet it is forgotten that an economy does not truly revolve around money, but the resources it contains. Although demand will skyrocket once economic activity resumes, the lost time in production and lessened supplies could result in a protracted bear market, especially if the millions of unemployed are unable to find work soon.
Last Week's Update (April 3rd, 2020)
M1 Finance Platform Referral Link: https://m1.finance/UIl_N9XNA_CO
M1 Finance Dividend Aristocrats 2020 Pie: https://m1.finance/quB1JH2k6
M1 Finance Platform Referral Link: https://m1.finance/UIl_N9XNA_CO
M1 Finance Dividend Aristocrats 2020 Pie: https://m1.finance/quB1JH2k6
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