M1 Finance Portfolio: Dividend Aristocrats 2020 - Week 34 (June 5th, 2020 - $597.59)

Week 34 - $597.59

For the third straight week, all sectors rose following a surprising development of 2.5 million jobs added in May last month and a declining unemployment rate of 13.3% since April's highest level, signaling hope of a potentially swift economic recovery.

Total Report (Since October 11th, 2019)

Positive Performing Sectors
1. Materials (+22.51%)
2. Industrials (+16.50%)
3. Information Technology (+13.63%)
4. Healthcare (+13.05%)
5. Consumer Discretionary (+12.42%)
6. Energy (+8.83%)
7. Consumer Staples (+8.03%)
8. Financials (+8.00%)

Negative Performing Sectors
9. Communication Services (-1.08%)
10. Real Estate (-1.45%)
11. Utilities (-8.37%)

Weekly Report (June 5th, 2020)

Positive Performing Sectors
1. Real Estate (+15.14%)
2. Energy (+13.32%)
3. Financials (+12.69%)
4. Consumer Discretionary (+9.39%)
5. Information Technology (+9.31%)
6. Industrials (+8.87%)
7. Materials (+6.95%)
8. Communication Services (+6.13%)
9. Consumer Staples (+2.00%)
10. Utilities (+1.01%)
11. Healthcare (+0.16%)

Negative Performing Sectors
None

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

Review

For three straight weeks, the entire stock market has rose from the major declines of the past three months to nearly recovering all of its gains since before the February price crash. Although there are still some ways to go before the economy has fully regained its strength, investors have already begun to price in stock values in a post-pandemic economy. All sectors have experienced positive gains in stock price without fail, with the hardest hit segments such as Energy and Real Estate driving much of the recent gains as a result of their severe undervaluation during the coronavirus crisis. This sudden and consistent rise in stock prices have been prompted by the positive jobs report and declining unemployment rate that may indicate a faster-than-expected recovery with more states opening up more businesses.

However it is wise to be cautious about these all-round gains, as much of the enthusiasm as of late has been on the basis that the economy will be back to levels before the shutdowns occurred. Already there is an ongoing trend of stock prices reaching higher than those levels, which may cause concerns of speculations in the market, especially as previous speculations of a failing economy this month proved unsubstantial. The economy itself has yet to show significant and substantial signs of recovery, as the recent reports are only reflective of last month and not the future performance of the economy for the year ahead. Further details are necessary to better evaluate the state of the economy moving forward and until then, it is likely stock prices will become unsustainable if businesses fail to recuperate earnings from lost time.

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Last Week's Update (May 29th, 2020)
M1 Finance Platform Referral Link: https://m1.finance/UIl_N9XNA_CO
M1 Finance Dividend Aristocrats 2020 Pie: https://m1.finance/quB1JH2k6