Nobody knows when the current bull market will end, and it is wise to have a diversified portfolio to be prepared for whatever happens. I own bond stocks like TLT, dividend stocks like CEFL and SDIV, and long stocks and ETFs such as SPXL, XLK, and JAMN, a coffee company stock.
SDIV pays almost 6% each year in dividends, and you get a distribution every month. Surprisingly, SDIV has also achieved a capital gain of almost 17% in the past year. This is a good stock to own in an aging bull market. Click on the chart below to expand it.
XLY, the consumer discretionary ETF, is a good stock to own nowadays as long as the economy remains in fairly good shape. I recently found out that XLY has beaten the S&P 500 handily in the last five years. If you look at the top ten holdings of XLY, you will find four entertainment stocks like Comcast and Disney. Ford is also there because cars are selling. Priceline is there because people are traveling. Amazon is on the list because people are shopping. So, XLY is a stock I plan to add to my portfolio soon since we need to make money whenever we have the opportunity to do it safely and in a diversified way.
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