M1 Finance Portfolio: Dividend Aristocrats 2020 - Week 47 (September 4th, 2020 - $912.36)

Week 47 - $912.36

Sudden volatility in the later half of the week dragged stock valuations down following weeks of rising gains in the midst of an economic crisis.

Total Report (Since October 11th, 2019)

Positive Performing Sectors
1. Materials (+35.73%)
2. Consumer Discretionary (+31.59%)
3. Consumer Staples (+21.85%)
4. Industrials (+21.58%)
5. Healthcare (+10.17%)
6. Financials (+5.00%)

Negative Performing Sectors
7. Real Estate (-9.63%)
8. Information Technology (-11.72%)
9. Utilities (-13.23%)
10. Communication Services (-13.98%)
11. Energy (-28.53%)

Weekly Report (September 4th, 2020)

Positive Performing Sectors
1. Real Estate (+1.82%)
2. Materials (+0.66%)
3. Utilities (+0.28%)
4. Consumer Staples (+0.16%)

Negative Performing Sectors
5. Consumer Discretionary (-0.52%)
6. Financials (-0.82%)
7. Industrials (-1.37%)
8. Information Technology (-2.00%)
9. Communication Services (-2.07%)
10. Healthcare (-3.15%)
11. Energy (-4.12%)

GICS Sector Performance Ratio - Balanced: From 9:2 (81.82%) to 4:7 (36.36%)

Review

The Federal Reserve has long touted about the increasingly-damaging state of the economy. Since the beginning of the pandemic crisis, unemployment has continued to rise, GDP remains negative, oil prices have sunk into the red, and a looming housing crisis threatens to evict millions of people unable to afford rent. Yet throughout this growing economic disaster, the stock markets have continued to rise, propped not by the current state of the economy, but by future predictions for a steady recovery. While the stock markets are willing to bet on a positive comeback, the Federal Reserve has taken a more conservative route, opting to keep interest rates at near zero for the next few years.

Some progress, however, is better than no progress. Work is coming back, with 1.4 million jobs added since August, alongside a 10.4% rise in productivity growth. Jobless claims are declining, with only 881,000 from last week compared to the million weekly claims in previous months. Finally, retail sales have returned to pre-coronavirus levels, indicating a strong, growing trend of consumer activity.

All that considered, it is likely the drops in valuations are simply corrections in the market for now. It is nearly impossible for a market to continuously rise without a few drops in between. However, the economic crisis has not yet passed. It is best to remain vigilant and continue to regularly invest and rebalance when needed.

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Last Week's Update (August 28th, 2020)
M1 Finance Platform Referral Link: https://m1.finance/UIl_N9XNA_CO
M1 Finance Dividend Aristocrats 2020 Pie: https://m1.finance/quB1JH2k6