Week 38 - $630.81
Stocks rebounded during the shorter trading week as more positive reports on job gains last month boosted hopes of an economic recovery despite many states halting or even reversing business re-openings amid new surges of coronavirus cases.
Total Report (Since October 11th, 2019)
Positive Performing Sectors
1. Materials (+12.45%)
2. Healthcare (+7.79%)
3. Consumer Staples (+5.06%)
4. Industrials (+1.96%)
5. Information Technology (+1.91%)
Negative Performing Sectors
6. Consumer Discretionary (-0.24%)
7. Financials (-8.25%)
8. Utilities (-13.06%)
9. Real Estate (-14.27%)
10. Communication Services (-15.91%)
11. Energy (-20.42%)
1. Materials (+12.45%)
2. Healthcare (+7.79%)
3. Consumer Staples (+5.06%)
4. Industrials (+1.96%)
5. Information Technology (+1.91%)
Negative Performing Sectors
6. Consumer Discretionary (-0.24%)
7. Financials (-8.25%)
8. Utilities (-13.06%)
9. Real Estate (-14.27%)
10. Communication Services (-15.91%)
11. Energy (-20.42%)
Weekly Report (July 3rd, 2020)
Positive Performing Sectors
1. Materials (+4.30%)
2. Utilities (+4.30%)
3. Healthcare (+3.03%)
4. Industrials (+2.99%)
5. Real Estate (+2.82%)
6. Consumer Discretionary (+2.19%)
7. Information Technology (+2.13%)
8. Communication Services (+1.25%)
9. Consumer Staples (+0.92%)
Negative Performing Sectors
10. Financials (-0.81%)
11. Energy (-1.58%)
1. Materials (+4.30%)
2. Utilities (+4.30%)
3. Healthcare (+3.03%)
4. Industrials (+2.99%)
5. Real Estate (+2.82%)
6. Consumer Discretionary (+2.19%)
7. Information Technology (+2.13%)
8. Communication Services (+1.25%)
9. Consumer Staples (+0.92%)
Negative Performing Sectors
10. Financials (-0.81%)
11. Energy (-1.58%)
GICS Sector Performance Ratio - Balanced: From 0:11 (0.00%) to 9:2 (81.82%)
Review
News on further gains in employment have strengthened investor confidence that an economic recovery is still underway, even as states face strong rises in coronavirus cases that have caused suspensions or even reversals of economic re-openings. Both the state and federal governments have shied away from contemplating a second closure of the economy thus far: the economic fallout would be far greater than that of the first.
Yet the reality of the situation is coming close to realizing a second economic shutdown, if not fully so. Early re-openings have contributed immensely to the sudden uptick in new infections, much more so than the initial surge seen back in March and April, and it is expected that these numbers will continue to spike so long as businesses are allowed to operate during the crisis. However it is unlikely that either the states or the federal government will backpedal on their decision to focus on an economic recovery over the containment of COVID-19 until it is too late to reasonably do so.
Government guidance insofar have been unreliable at best: failure to aggressively contain the virus during the initial outbreak contributed to widespread cases of community spread. The lack of infrastructure, planning, and logistics to ramp up production of vital medical equipment and testing of potential infected eventually forced the use of a nationwide lockdown to stand in for this massive shortage. Much of these measures has been reactive as opposed to proactive, and it is likely that the current surges will see similar results if drastic measures are not taken. The markets have nearly recovered back to its January highs, yet they still do not match the current state of the economy yet. Half of the year has gone by with nearly all of it under lockdown. If the crisis continues onto next quarter, it is likely the economy will crash once more as consumer spending and business reverse course.
Yet the reality of the situation is coming close to realizing a second economic shutdown, if not fully so. Early re-openings have contributed immensely to the sudden uptick in new infections, much more so than the initial surge seen back in March and April, and it is expected that these numbers will continue to spike so long as businesses are allowed to operate during the crisis. However it is unlikely that either the states or the federal government will backpedal on their decision to focus on an economic recovery over the containment of COVID-19 until it is too late to reasonably do so.
Government guidance insofar have been unreliable at best: failure to aggressively contain the virus during the initial outbreak contributed to widespread cases of community spread. The lack of infrastructure, planning, and logistics to ramp up production of vital medical equipment and testing of potential infected eventually forced the use of a nationwide lockdown to stand in for this massive shortage. Much of these measures has been reactive as opposed to proactive, and it is likely that the current surges will see similar results if drastic measures are not taken. The markets have nearly recovered back to its January highs, yet they still do not match the current state of the economy yet. Half of the year has gone by with nearly all of it under lockdown. If the crisis continues onto next quarter, it is likely the economy will crash once more as consumer spending and business reverse course.
Last Week's Update (June 26th, 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
No comments:
Post a Comment