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Buy 1 Stock, Sell 2 as Consumer Spending Spree Ramps Up

This story was originally published here

When the economy is booming, there are jobs aplenty, and things are moving in a good direction; we are very confident about the future. And that means a bump in consumer discretionary spending.

For 11 years, we had the longest bull run in stock market history.

Times were great.

We had money burning a hole in our pockets. And we couldn’t wait to spend it on non-essential items, like televisions, cars or vacations.

But things have changed thanks to the coronavirus.

And one sector of the stock market plunged more than 34% during the coronavirus crash in March.

We may be entering a new phase now.

The S&P 500 Consumer Discretionary Sector SPDR ETF (NYSEARCA: XLY) — an exchange-traded fund tracking some of the biggest consumer discretionary stocks — jumped more than 70% since reaching a low in March 2020.

It topped out at around $153 per share at the first of September but has pulled back slightly since.

The ETF holds companies like Amazon.com Inc. (Nasdaq: AMZN), Home Depot Inc. (NYSE: HD) and The TJX Companies, Inc. (NYSE: TJX) — the parent company of discount department store chain T.J. Maxx.

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How To Invest In The Tiny Company Behind the "Forever Battery"

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