The past month has been very volitile with fears of Europe, in the words of the WHO, on the brink of a second wave of Covid-19. The US continues to be a source of concern with infection rates at all time highs.
Another key highlight of this past month is the release of quarterly data. The US posted the worst quarterly decline in GDP since the Second World War with a 32.9% contraction. The Eurozone countries also posted a combined 12.1% decline in GDP between April and June this year; the EU as a whole was -11.9%.
I think it is fair to say that a ‘V-shaped’ recovery is very much out of the question at this stage. The stock market recovery has completely stalled, unless your a tech company or Tesla. That combined with GDP data has shown that this economic crisis is not going to result a fast recovery, rather one that will go well into 2021.
In terms of sectors to keep an eye on, I am very much interested in three – tech, pharmaceuticals and financials. Tech is interesting because work from home is going to be continuing for at least another year along with online ordering. Pharma along with being a generally good stock to hold at any time will explode if a vaccine is produced for Covid-19, key companies to watch will be Johnson & Johnson and AstraZenica. Financially financials, while they are highly cyclical banks are in a much healthier state despite posting losses in Q2. With financial share prices at 8 year+ lows, I think now is a good time to load up to hold for 2+ years.
If you are interested in something more risky, cryptocurrency is going through a very interesting phase. It is widely accepted that a new bull run is in its beginning stages which may exceed that of 2017. I have seen this reflected in holdings of crypto. I have only put in £315 which is now valued at £668.09, a 112% ROI.
The Total Portfolio
My total portfolio breaks down as follows:
- Cash: £2,913.24 (+72.22)
- Pension: £3,939.33 (+175.95)
- Peer to Peer Lending: £777.97 (+1.21)
- Stocks: £1,950.44 (+115.59)
- Cryptocurrency: £668.09 (+145.06)
- Silver: £104.35 (+22.47)
So my total net worth is £10,353.42 (+532.50)
For a breakdown of my stocks portfolio: here
- Dividends: £3.66
- Peer to Peer Lending £1.21
- Cryptocurrency £13.30
- Ebay £56.47
Total: £74.66 (+60.73)
All dividends and peer to peer lending interest is reinvested to produce more income. Income from crypto is currently just accumulating in order to hopefully get some capital gains.