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.
Action Plan: As I told War Room members last week…
If we see a buyable dip (which is a gap down, support bounce and hold pattern), we could move into calls on a consumer discretionary play – and XLY is a great collection of names. Its top 10 holdings include Amazon, Home Depot, McDonald’s, Nike, Lowe’s, Starbucks, Booking.com, Target, TJX and Dollar General.
Do you see that “W pattern” that occurred right around the $140 level? That’s what I used to hit a winner recently – and on the next dip, I’m getting ready to do it again! Join me in The War Room to get this play in real time!
P.S. Get ready for the launch of our new service, Trade of the Day Plus, coming soon! Karim and I will provide you with our top pick every week… This is something you won’t want to miss. We’ll not only give you our top trade but also track it and provide you with a notice of when to exit the position!
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