Week 36 - $607.12
After a chaotic week following worrisome developments in increasing coronavirus cases across the country, stocks began to recover on new economic data suggesting the economy is recovering from its lowest levels.
Total Report (Since October 11th, 2019)
Positive Performing Sectors
1. Materials (+8.16%)
2. Healthcare (+7.33%)
3. Consumer Staples (+5.34%)
4. Consumer Discretionary (+2.37%)
5. Industrials (+1.27%)
6. Information Technology (+0.83%)
Negative Performing Sectors
7. Financials (-3.71%)
8. Communication Services (-15.52%)
9. Energy (-15.65%)
10. Real Estate (-17.01%)
11. Utilities (-18.60%)
1. Materials (+8.16%)
2. Healthcare (+7.33%)
3. Consumer Staples (+5.34%)
4. Consumer Discretionary (+2.37%)
5. Industrials (+1.27%)
6. Information Technology (+0.83%)
Negative Performing Sectors
7. Financials (-3.71%)
8. Communication Services (-15.52%)
9. Energy (-15.65%)
10. Real Estate (-17.01%)
11. Utilities (-18.60%)
Weekly Report (June 19th, 2020)
Positive Performing Sectors
1. Consumer Staples (+2.68%)
2. Materials (+2.48%)
3. Consumer Discretionary (+2.38%)
4. Healthcare (+2.18%)
5. Financials (+2.04%)
6. Industrials (+1.31%)
7. Information Technology (+1.29%)
Negative Performing Sectors
8. Communication Services (-0.64%)
9. Energy (-2.42%)
10. Utilities (-3.16%)
11. Real Estate (-3.32%)
1. Consumer Staples (+2.68%)
2. Materials (+2.48%)
3. Consumer Discretionary (+2.38%)
4. Healthcare (+2.18%)
5. Financials (+2.04%)
6. Industrials (+1.31%)
7. Information Technology (+1.29%)
Negative Performing Sectors
8. Communication Services (-0.64%)
9. Energy (-2.42%)
10. Utilities (-3.16%)
11. Real Estate (-3.32%)
GICS Sector Performance Ratio - Balanced: From 0:11 (0.00%) to 7:4 (63.64%)
Review
Stocks fell in limbo at the beginning of the week, see-sawing between gains and losses as a new surge in coronavirus cases sowed doubt into the future prospective of the economy. However, with recent economic data showing signs of increasing consumer activity, backed by the Federal Reserve's backing of individual corporate bonds and plans of a potential one trillion dollar infrastructure project from the White House, the markets rallied by the end of the week.
While it is welcoming to see the economy recovering from its lows back in March, one must be wary of overoptimistic projections. This is especially as state governments across the country are refusing to close back down despite a surge in new coronavirus cases that may overwhelm medical facilities faster than the initial wave introduced from February. Medical supplies are often at dangerously low levels and with every business now relying on these medical supplies themselves to stay in operation, a greater outbreak will strain the system far beyond what the economy itself could hope to recover from in a short period of time.
Trillions of dollars have been pumped into the economy far faster than it has ever been in the past ten years. Even with such aggressive financial support, without a fully recovered economy the money pumped into the system will do little to prevent an economic collapse once the situation deteriorates long enough and debt becomes unrecoverable. It is safer to err on the side of caution and wait for new developments on coronavirus treatments and, more importantly, the vaccine, over any recent updates on the state of the national economy.
While it is welcoming to see the economy recovering from its lows back in March, one must be wary of overoptimistic projections. This is especially as state governments across the country are refusing to close back down despite a surge in new coronavirus cases that may overwhelm medical facilities faster than the initial wave introduced from February. Medical supplies are often at dangerously low levels and with every business now relying on these medical supplies themselves to stay in operation, a greater outbreak will strain the system far beyond what the economy itself could hope to recover from in a short period of time.
Trillions of dollars have been pumped into the economy far faster than it has ever been in the past ten years. Even with such aggressive financial support, without a fully recovered economy the money pumped into the system will do little to prevent an economic collapse once the situation deteriorates long enough and debt becomes unrecoverable. It is safer to err on the side of caution and wait for new developments on coronavirus treatments and, more importantly, the vaccine, over any recent updates on the state of the national economy.
Last Week's Update (June 12th, 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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