Week 27 - $371.49
The stock market rose again for the second straight week from positive news of the COVID-19 pandemic showing signs of slowing down and plans for a three-phased economic reopening is introduced.
Total Report (Since October 11th, 2019)
Positive Performing Sectors
1. Healthcare (+10.74%)
2. Utilities (+2.33%)
3. Consumer Staples (+1.13%)
Negative Performing Sectors
4. Materials (-15.52%)
5. Communication Services (-16.46%)
6. Information Technology (-16.49%)
7. Industrials (-19.89%)
8. Consumer Discretionary (-20.96%)
9. Financials (-24.75%)
10. Energy (-29.87%)
11. Real Estate (-37.91%)
1. Healthcare (+10.74%)
2. Utilities (+2.33%)
3. Consumer Staples (+1.13%)
Negative Performing Sectors
4. Materials (-15.52%)
5. Communication Services (-16.46%)
6. Information Technology (-16.49%)
7. Industrials (-19.89%)
8. Consumer Discretionary (-20.96%)
9. Financials (-24.75%)
10. Energy (-29.87%)
11. Real Estate (-37.91%)
Weekly Report (April 17th, 2020)
Positive Performing Sectors
1. Healthcare (+5.85%)
2. Consumer Staples (+3.69%)
3. Utilities (+2.97%)
4. Energy (+2.55%)
5. Consumer Discretionary (+1.92%)
6. Communication Services (+1.64%)
Negative Performing Sectors
7. Industrials (-0.91%)
8. Information Technology (-0.98%)
9. Materials (-2.18%)
10. Financials (-2.26%)
11. Real Estate (-6.40%)
1. Healthcare (+5.85%)
2. Consumer Staples (+3.69%)
3. Utilities (+2.97%)
4. Energy (+2.55%)
5. Consumer Discretionary (+1.92%)
6. Communication Services (+1.64%)
Negative Performing Sectors
7. Industrials (-0.91%)
8. Information Technology (-0.98%)
9. Materials (-2.18%)
10. Financials (-2.26%)
11. Real Estate (-6.40%)
GICS Sector Performance Ratio - Balanced: From 11:0 (100.00%) to 7:4 (63.63%)
Review
Rising optimism over receding new cases of COVID-19 boosted the stock markets higher this week despite weak economic data indicating an impending recession looming in the next few months. Progress over new testing capabilities and developments over experimental treatments and a new vaccine is steady, but will likely not make any significant impact in the near future. Active social distancing measures are currently still the most effective combatant against the pandemic outbreak and thus shutdowns will continue to be extended until there is enough confidence to resume economic activity.
Every precaution is taken to ensure that a second wave of COVID-19 outbreaks will not occur, for if it does, the economic fallout will worsen and the recovery will become long and painful. Both monetary and fiscal measures to keep businesses afloat and individuals out of financial distress continue to ramp up, yet the impact is not potent enough to stop the skyrocketing unemployment rates and the public discontent over growing amounts of debt and the inability to obtain new credit or income to cease the hemorrhaging of people's wealth. The slow and steady response in a rapidly-deteriorating crisis could result in irreparable damage to key components of the US economy that may take many years to fully recover from.
It is wise to be cautious in such case, as the current optimism in the stock market is not truly reflective of the economic status of the country as a whole. In the short term, stock markets are volatile and have little, if any, ties to the actual economic performance of a nation, but in the long term, it serves as one of the many accurate indicators to the strength and prosperity of the nation. For now, the trend of the economy remains negative, so expect to see further dips in the future until the pandemic is fully contained and consumer confidence and business activity returns.
Every precaution is taken to ensure that a second wave of COVID-19 outbreaks will not occur, for if it does, the economic fallout will worsen and the recovery will become long and painful. Both monetary and fiscal measures to keep businesses afloat and individuals out of financial distress continue to ramp up, yet the impact is not potent enough to stop the skyrocketing unemployment rates and the public discontent over growing amounts of debt and the inability to obtain new credit or income to cease the hemorrhaging of people's wealth. The slow and steady response in a rapidly-deteriorating crisis could result in irreparable damage to key components of the US economy that may take many years to fully recover from.
It is wise to be cautious in such case, as the current optimism in the stock market is not truly reflective of the economic status of the country as a whole. In the short term, stock markets are volatile and have little, if any, ties to the actual economic performance of a nation, but in the long term, it serves as one of the many accurate indicators to the strength and prosperity of the nation. For now, the trend of the economy remains negative, so expect to see further dips in the future until the pandemic is fully contained and consumer confidence and business activity returns.
Last Week's Update (April 10th, 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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