M1 Finance Portfolio: Dividend Aristocrats 2020 - Week 31 (May 15th, 2020 - $434.58)

Week 31 - $434.58

Confidence in the stock market tumbled as recent economic reports point to an increasingly deflationary environment despite unprecedented monetary policies by the Federal Reserve to keep liquidity flowing.

Total Report (Since October 11th, 2019)

Positive Performing Sectors
1. Healthcare (+7.10%)

Negative Performing Sectors
2. Consumer Staples (-3.05%)
3. Materials (-11.00%)
4. Industrials (-19.44%)
5. Information Technology (-21.23%)
6. Consumer Discretionary (-21.37%)
7. Utilities (-25.18%)
8. Energy (-25.31%)
9. Communication Services (-28.59%)
10. Financials (-33.35%)
11. Real Estate (-41.98%)

Weekly Report (May 15th, 2020)

Positive Performing Sectors
1. Healthcare (+0.15%)

Negative Performing Sectors
2. Consumer Staples (-1.04%)
3. Utilities (-2.58%)
4. Materials (-2.70%)
5. Industrials (-4.39%)
6. Consumer Discretionary (-4.91%)
7. Communication Services (-4.92%)
8. Financials (-5.50%)
9. Energy (-6.01%)
10. Information Technology (-7.29%)
11. Real Estate (-7.82%)

GICS Sector Performance Ratio - Balanced: From 9:2 (81.82%) to 1:10 (9.09%)

Review

Since the beginning of the global pandemic crisis, stocks valuations have been in limbo for the last few months as investors attempt to gauge the future performance of companies and price these stocks accordingly. However, with the highly volatile and unpredictable nature of the COVID-19 virus and the worsening economic situation, the stock markets continue to pivot erratically on the basis of a quick recovery versus a prolonged contraction. Recently, it has been forecast that the economic recovery will most likely be slow and painful despite the unlimited exercise of monetary power by the Federal Reserve and the federal government's unprecedented fiscal policies in the form of record-breaking stimulus bills. Even more extraordinarily, core inflation has gone down. This is not surprising considering that both demand and supply have gone down dramatically since the economic shutdowns began. All the money currently injected into the system are not going into tangible products but passive services that provide little to no real intrinsic value: assets that provide returns merely for it existing. The flow of cash is not going into the production of goods and products that would otherwise satiate demand and it is certainly not flowing enough towards the people that would make up that demand. The economic system has effectively clogged itself of illiquid cash that will not move far without substantial increase in both demand and supply on a common level. The second stimulus bill currently under debate in Congress is meant to address this pitfall present in the first stimulus bill. Yet it is doubtful whether any of the provisions listed will make a significant impact in repairing or slowing the economic and financial damage that the shutdowns have caused.

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Last Week's Update (May 8th, 2020)
M1 Finance Platform Referral Link: https://m1.finance/UIl_N9XNA_CO
M1 Finance Dividend Aristocrats 2020 Pie: https://m1.finance/quB1JH2k6