Please find attached Weekly Digest, with a worthwhile read from John Wyn-Evans.
Firstly, showing the dominance of “mega cap” US technology names in 2020. The “Awesome 8” (Amazon, Apple, Google, Microsoft, Netflix, Facebook, Nvidia and Tesla) have enjoyed an amazing rally since March and looking at 2020 as a whole, thus far. Indeed, the largest five stocks in the S&P 500 (US stockmarket) are +35% in 2020, while the remaining 495 remain -5%:
As a result of this divergence in performance, the top ten stocks in the S&P 500 now account for a record high % of the index:
Second, showing the revival of retail spending in the UK (similar trends exist in the US and Europe). UK retail sales were +1.4% in July 2020 versus July 2019, a remarkable figure to me in the circumstances. Visa data shows a similar picture and highlights an interesting, if unsurprising, split between off/online expenditure:
Both of these are points are constructive for the manner in which we wish to construct portfolios – looking to the future in relevant companies and sectors. However, as always, we also wish to employ sensible, robust risk management and do not want to have too much exposure to anything. 2020 continues to be a year in which we are making a material number of changes to portfolios.
Investec Food Bank Support
We are undertaking a number of initiatives at this difficult time for many. Please find attached some information regarding an extension of our support to Food Banks in the UK.