A Secret Way to Own Amazon
As I’m sure you know, Amazon trades for more than $3,100 per share.
If you want to own 100 shares, you’re looking at dropping $310,000.
What’s a better way to own Amazon without taking out a second mortgage on your house?
In my view, one of the very best collections of stocks comes from an exchange-trade fund (ETF) called the Consumer Discretionary Select Sector SPDR Fund (NYSE: XLY)
For around $147 per share, here’s what you get:
I love this collection of companies.
It’s one of the strongest ETF baskets I’ve seen in quite a long time.
First and foremost, you’re getting one-quarter of your total investment in Amazon – all for around 96% less than the cost of one Amazon share.
You also get exposure to the red-hot housing market with Home Depot and Lowe’s.
Then comes McDonald’s and Nike – both of which have been strong performers lately.
Looking specifically at Nike, it just reported $10.6 billion in revenue, which far surpassed Wall Street’s expectation of $9.1 billion and triggered a powerful upside move.
From there, you round it out with Starbucks, Booking.com, Target and Dollar General – all of which have been strong during the pandemic (and will come out of it even stronger).
But don’t take my word for it.
Just consider this performance…
- Year to date, the S&P 500 has returned 3.57%.
- Year to date, the Dow has returned negative 3.11%.
And then you have the Consumer Discretionary Select Sector SPDR Fund, which has a year-to-date return of 15.8%.
That’s a remarkable difference, which goes to show you how important stock selection can be.
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About Bryan Bottarelli
Bryan graduated with a business degree from the highly rated Indiana University Kelley School of Business, and his first job out of college was trading stock options on the floor of the Chicago Board Options Exchange. He was mentored by some of the country’s top floor traders in the heart of the technology boom from 1999 to 2000, where he learned to identify and implement some of his most powerful trading secrets. Now he shares his secrets with a group of elite traders. We will be republishing some of his highly sought after content from his free e-letter, Trade of the Day.