America’s Two-Way Recovery Continues: 1 ETF to Buy
Trump or Biden.
Many people anxiously waited for the results of the presidential election. But there was no clear winner when Election Day 2020 came to a close.
If you’re still worried, the best thing to do right now is just hit the pause button.
Stop and take a break. Go for a walk or have a socially distanced cup of coffee with friends.
Because no matter who you voted for … no matter who’s in the White House in January 2021 … your portfolio and retirement will be alright.
The result of the election may rattle stock markets over the next few days and weeks. But you don’t make long-lasting profits in days or weeks.
You grow your nest egg by betting on the bigger picture: companies in booming industries.
And right now, several industries are continuing to stand out from the crowd…
The 2-Track Recovery Continues
As we’ve told you before, the COVID-19 pandemic has highlighted the two-track future of our economy.
There are businesses that will fail to rebound — movie theaters, airlines, restaurants and retailers without an online presence…
Then, there are the ones that’ll not only survive, but thrive even more in the years ahead.
As Alpha Investor Editor, Charles Mizrahi, said:
People need technology to work and keep themselves entertained from home. They still need medicine and health care services. And they need to be able to buy products online.
And this is exactly what we’re seeing play out now, even in the middle of election chaos.
Regal Cinemas shut down all 536 of its theaters last month. Yesterday, all major cruise lines announced they were suspending all operations until 2021. And Nike is eliminating 700 jobs at headquarters in order to focus its efforts on its e-commerce segment.
At the same time, online furniture giant Wayfair reported a 67% sales boost in the past few months. And it’s not alone. Amazon is seeing an uptick in sales as the holidays approach, too. In fact, the company has hired nearly 250,000 new employees in the last few months to keep up with demand.
So, the two-track economy is here to stay. And if you want to get in on your share of this growth, there’s an easy way to do so today.
Invest in Pandemic-Proof Industries
Technology stocks are showing strength across the board — especially those tapping into industries with huge tail winds, like streaming, e-commerce and the Subscription of Everything.
For broad exposure to these growing companies, consider a position in the Vanguard Information Technology ETF (NYSE: VGT).
This exchange-traded fund (ETF) holds a basket of 330 top tech stocks including Apple, Microsoft and Paypal. These are the kinds of stocks that’ll lead the way in our post-pandemic future.
In fact, tech is already outpacing the broad market. Since the market lows in March, VGT is up over 62%. Over the same time period, the SPDR S&P 500 ETF (SPY) is only up about 47%.
And even on Wednesday morning with unclear election results, the tech-heavy Nasdaq started the day up over 4%.
So, don’t sweat the election. Focus on the bigger picture for making money. And remember, we’ll be here to do all the heavy lifting to help you identify the best profit opportunities in every market condition.
Managing Editor, Alpha Investor