Since 2019, I've made four strategic investments in U.S. stock ETFs during market dips, known as "golden pits," and all have been profitable.
In 2020, I bought the Technology Select Sector SPDR Fund (XLK) during a golden pit, and it has yielded a return of 214%. On the same day, I also bought the Nasdaq ETF, which has only earned a 127% return.
The long-term compound interest ranking for U.S. ETFs is as follows: Technology Select Sector SPDR Fund (XLK), Nasdaq-100 ETF (QQQ), Nasdaq Composite Index, and S&P 500.
The S&P 500 has lower profits, but it offers the best experience with the least amount of drawdown. The Technology Select Sector SPDR Fund and the Nasdaq-100 ETF have higher profits but come with greater volatility, and they also present the most opportunities for golden pit investments.
The Nasdaq-100 ETF presented a golden pit opportunity before last year's Spring Festival, and there hasn't been another one since. However, both the Technology Select Sector SPDR Fund and the S&P 500 seem to have golden pits almost every year, providing more opportunities for strategic investments.
Investing in U.S. ETFs during golden pits for the long term is the simplest and most effective way to profit.
We should have a global perspective in our investments. The U.S. stock market is the easiest to navigate. Even if you don't understand it, you should at least have some allocation in it.
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