M1 Finance Portfolio: Dividend Aristocrats 2020 - Week 40 (July 17th, 2020 - $721.40)

Week 40 - $721.40

Stocks rise for the third week in a row, backed by increased retail sales and industrial production as the market looks to reach back to its historical highs, even as the threat of further shutdowns looms.

Total Report (Since October 11th, 2019)

Positive Performing Sectors
1. Materials (+25.93%)
2. Healthcare (+19.53%)
3. Consumer Staples (+11.65%)
4. Industrials (+11.64%)
5. Financials (+5.47%)
6. Consumer Discretionary (+5.14%)

Negative Performing Sectors
7. Information Technology (-1.79%)
8. Communication Services (-10.82%)
9. Utilities (-11.66%)
10. Energy (-21.03%)
11. Real Estate (-23.70%)

Weekly Report (July 17th, 2020)

Positive Performing Sectors
1. Healthcare (+6.11%)
2. Materials (+5.74%)
3. Industrials (+5.67%)
4. Financials (+3.98%)
5. Consumer Discretionary (+2.81%)
6. Consumer Staples (+2.28%)
7. Energy (+2.19%)
8. Utilities (+2.10%)
9. Information Technology (+0.39%)
10. Communication Services (+0.37%)
11. Real Estate (+0.03%)

Negative Performing Sectors
None

GICS Sector Performance Ratio - Balanced: From 4:7 (36.37%) to 11:0 (100.00%)

Review

Stocks saw valuations rise across all sectors on positive news for both retail and industry, with retail sales increasing by 7.5% since June and industrial production seeing its largest increase since 1959. While any positive news is welcoming news in light of the COVID-19 recession, it is important to bear in mind that these gains in the economic sector are merely recovering to the levels before the pandemic ignited a global economic crisis. Many economic sectors are still not performing at their pre-pandemic levels, yet because stock pricing is forward-looking as opposed to backward-looking, valuations are often prone to overestimation of the severity of a given event, whether it be bolstered investor confidence or heightened fears. This forward-thinking mindset also leads the stock market to underestimate the impact any given event may have over the long-term health of the economy. The reality of the situation is never priced in until after the fact is revealed, and this often leads to notable discrepancies between what investors believe a company is worth versus the real intrinsic value of the company. Short-term evaluations rarely reflect the current value of an investment, but given a long enough time frame, the value of an investment reflects less of speculative pricing and more of the true economic value an investment provides.

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Last Week's Update (July 10th, 2020)
M1 Finance Platform Referral Link: https://m1.finance/UIl_N9XNA_CO
M1 Finance Dividend Aristocrats 2020 Pie: https://m1.finance/quB1JH2k6