 | |  | | | | Four Ticker Symbols for a Prosperous New Year |  | By Alex Moschina, Associate Publisher |
| Aaand we're out! 2020 is officially behind us.
It's hard to believe that the same 12-month period that saw stocks, gold and cryptocurrency hit record highs also gave us the chance to witness so many new lows for our elected officials.
It was truly a magical year.
How about we start 2021 with a few fresh tickers?
We've spent several recent Bulletins extolling the virtues of crypto, but let's not forget how stocks bounced back from March's "coronavirus crash" with an absolute vengeance. I hope you got in on the action.
Unfortunately, I know many of the folks reading these words did not.
Is This You?
According to Forbes, only 14% of American families invest directly in stocks. And just over half of the nation invests passively through retirement funds and 401(k)s.
So there's a good chance you either aren't invested in the stock market at all... or you are, but you're letting someone else hold the reins.
In the months ahead, being on the sidelines or even passively managing your money will spell trouble.
It's no time to be sitting on your hands.
Maybe you don't know where to start. If that's the case - and even if it's not - keep reading. To help you kick off 2021 right, I want to give you four tickers to build a rock-solid foundation for your investment portfolio.
To be clear, these aren't "slow growth" plays with a small fixed yield or anything like that. As you'll see, they offer plenty of protection... and upside.
In other words, they're the perfect complement to any active trading portfolio. And if you're just getting started investing, these are the ideal exchange-traded funds (ETFs) to check out first.
Simply the Best?
Let's kick things off with a benchmark investment that 90% of professional traders can't beat.
Everyone knows the S&P 500. It's the index that all other investments are compared with. And for good reason - the S&P comprises the biggest and best companies in America.
And those are exactly the kinds of companies you want to own if your goal is to generate reliable, long-term wealth.
That's why new investors looking for an easy way in should consider allocating at least half of a simple, base portfolio to the SPDR S&P 500 ETF Trust (SPY). Since 1993, this specialized fund - the largest ETF in the world - has closely tracked the performance of its namesake.
Shares have more than tripled over the past decade as blue chip stocks enjoyed a massive bull run. And as an added bonus, the fund can be traded without commission on many online platforms, including E-Trade and TD Ameritrade.
Top holdings include powerhouse businesses like Visa, Berkshire Hathaway, Johnson & Johnson and more.
Profiting From the Future of America
Next up we have another proven growth play... with even more explosive potential...
While the SPDR S&P 500 ETF Trust has steadily grown investors' money over the past decade, the Vanguard Information Technology ETF (VGT) has absolutely supercharged it.
Shares of the Vanguard Information Technology ETF - which, as its name suggests, comprises the biggest names in tech - have rocketed more than 490% since 2010. As Andy has shown, tech is an ideal place to invest as the world accepts financial stimulus and quantitative easing as the norm. Since these companies have relatively few tangible assets, they can absorb higher valuations without investors stopping to ask why (see Tesla).
In short, the Vanguard Information Technology ETF is an ideal play for today... and an even better play for tomorrow. Through this fund, you'll get exposure to the biggest names in tech, including Intel, Nvidia, Apple, Cisco Systems, PayPal and many more.
Playing History's Greatest Growth Stories
If you've been paying attention to the news in recent years, you understand that China has emerged as a top global superpower. Business is booming in the Far East. And we've got the perfect way to play the trend...
The Schwab Emerging Markets Equity ETF (SCHE) tracks the FTSE Emerging Index, which provides exposure to the most liquid companies in emerging markets. As you can see, the 10-year chart for the Schwab Emerging Markets Equity ETF doesn't appear as rosy as the last two charts we examined. But look closer.
Recent years have seen the rise of megacorps like Alibaba and Tencent. With the help of these and other Chinese success stories, shares of the Schwab Emerging Markets Equity ETF have quickly shot up by as much as 59% since 2016.
Having exposure to emerging markets - i.e., the countries that will pick up America's pieces - is key to proper diversification. The Schwab Emerging Markets Equity ETF's top holdings include the following and more: - Alibaba
- Tencent
- Taiwan Semiconductor Manufacturing Co.
- Reliance Industries Ltd.
- China Construction Bank Corp.
An Old-School Safety Net Headed to New Heights
You can't talk about rock-solid investments without mentioning the original rock-solid investment... gold.
For literally thousands of years, gold has been a store of value for countless civilizations. It's the ultimate insurance policy... and, even today, it should be a cornerstone of your base portfolio. But before you go thinking that gold is just some old-school anchor that will weigh down your portfolio, take a look at the recent price action of the SPDR Gold Shares (GLD)... In case you're unfamiliar with the ETF, this specialty fund tracks gold's spot price. In 2020 alone, shares ended the year up almost 25%.
And there are plenty of reasons to believe gold's bull run will continue.
Here are just a few of the underlying "big picture" fundamentals... - Government spending policies across the world are expansionary and inflationary, which tends to help gold prices.
- Several key global players - with China and Russia leading the pack - seek an alternative to the dollar and/or petrodollar. Gold is clearly part of that scenario.
- Geopolitics is flaring up - hyperinflation and chaos in Venezuela, tensions with North Korea and Russia, and the U.S.-China trade war, for example. This kind of risk favors gold.
- Gold discoveries in the past 20 years are fewer and fewer. Supply is tightening.
- Gold demand is growing from China, Russia, India, individual investors and more.
Overall, it's all positive for gold and, by extension, the SPDR Gold Shares ETF.
Like Nike Said...
The important thing is to get started. Just do it.
Open up a brokerage account if you haven't already.
Comb through the tutorials we've posted on the Manward YouTube page.
Or sign up for Manward Letter and get all the details of Andy's popular Modern Asset Portfolio, a supercharged version of what's above.
But above all... invest.
Cheers to a prosperous new year. | | | | | |
| Thanks to a rigid focus on the unemployment number, we now have a new class of workers to track. They go to work each day. But they're not doing much. And the companies that employ them no longer fund their paychecks. It's a sad and scary idea... Keep reading. | | | | | | |
Online brokerage accounts have made it easier than ever to get in on the action and start building wealth. But too many folks don't know how to get started. In this special episode of Markets With Manward, Andy walks you through the paces to set up an account.
Click here or on the play button below to watch. | | | | | | |
"How many millionaires do you know who have become wealthy by investing in savings accounts?"
- Robert G. Allen |
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