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\t\t\t\t\t The coronavirus-induced\u00a0stock market crash has created generational buying opportunities. This\u00a0pandemic has given us lemons to make lemonade<\/a>.\u00a0Although some\u00a0equities have rebounded from their March lows, there remain deals everywhere. If you play your cards right, you can score\u00a0some serious\u00a0steals. What follows is a winning\u00a0strategy that is crushing the S&P 500 index now\u00a0and for years to come.<\/p>\n<\/div>\n Our pre-coronavirus portfolio<\/span><\/strong><\/p>\n Our passive investment\u00a0portfolio was down significantly in the early days of this pandemic.\u00a0In order to generate alpha, we went to the coronavirus marketplace to score some deals. We outline our approach below.\u00a0<\/span><\/p>\n<\/div>\n 1. Implement a keep-but-trim approach.<\/span><\/strong><\/p>\n As with all bear markets, some sectors will be losers and others\u00a0winners. Although small caps seem to be making a comeback, the coronavirus has not been too kind to them\u00a0(see table below courtesy MarketWatch). The Russell 2000 index<\/a>, which tracks the performance of America’s smallest companies, is down -16.45%. On the other hand, the S&P 500 index is down -5.77% YTD and up +10.62% for the year. One way to maximize returns is to follow market\u00a0trends. As of right right now, the investing landscape seems to favor\u00a0growth. We strategically (in stages) and\u00a0significantly trimmed a large portion of\u00a0our small-cap allocation and some of our mid-cap holdings. We then re-invested those proceeds\u00a0towards our large cap holdings\u00a0and other stocks.<\/p>\n<\/div>\n 2. Sever ties with perpetual\u00a0laggards.<\/span><\/strong><\/span><\/p>\n In our case, the laggards were mostly REITs. You should never be afraid to cut ties with\u00a0under-performers. Most of us, at one point or another,\u00a0have\u00a0had\u00a0securities in our\u00a0portfolios that we thought\u00a0would eventually\u00a0come back. But they only\u00a0sank our portfolio deeper into the red, unfortunately. We eliminated ALL\u00a0REITs from our portfolio. We\u00a0used the proceeds towards other non-REIT stocks.<\/p>\n<\/div>\n 3. Add income.<\/span><\/strong><\/span><\/p>\n Because capital appreciation can be hard to come by during these turbulent market\u00a0times, we decided to add some income.<\/p>\n We’re not only getting income from our dividend ETF and dividend-paying stocks, but also from our index funds.\u00a0<\/p>\n As of\u00a05\/31\/2020 (YTD), we raked in a grand total of $956.89 in dividend payments. Although we get dividend payment from our portfolio, our main focus is growth.<\/span><\/p>\n<\/div>\n 4. Add more growth.\u00a0<\/span><\/strong><\/p>\n Index funds provide average returns. They disappoint during bear markets.\u00a0As the market index the fund tracks goes, so will the returns. We’re not comfortable with average market returns. We want maximum returns as much as possible.\u00a0To achieve this, we\u00a0added more growth to our large growth ETF with 10 different stocks from\u00a0the technology, healthcare and alternative energy sectors.<\/span><\/p>\n<\/div>\n The bottom line<\/span><\/strong><\/p>\n The coronavirus pandemic has created an unprecedented\u00a0opportunity to create generational wealth. Although securities have somewhat rebounded from their March lows, there remain yet opportunities galore. We took advantage of these unprecedented bargains to beat the market. Our efforts have already been fruitful. As of 05\/31\/2020, we’re up over 11%, while the S&P 500 is still in the red\u00a0YTD. We anticipate the winning trend to continue well beyond the current\u00a0pandemic.<\/p>\n As a token of our appreciation for reading this article, we want to highlight 2 of the many stocks that comprise our portfolio: The Trade Desk (TTD) and Abbvie (ABBV). If you follow us on twitter<\/a>, you already have access to 2 other top picks that are crushing the S&P 500 index by a landslide! One such\u00a0pick\u00a0is up 49.5% YTD, while\u00a0the other is up\u00a069.5%!<\/p>\n Subscribe below\u00a0to get access to the rest of\u00a0our market-crushing\u00a0portfolio. If you like this post, do us a big favor: share it\u00a0on your favorite social media platform. Let’s get rich together<\/a>.<\/p>\n<\/div>\n Disclosure<\/em><\/strong>: We are long\u00a0TTD &\u00a0ABBV. We wrote this article<\/em><\/em> ourselves. It expresses our opinions. We do not receive compensation<\/em> from the companies highlighted, nor do we have any business relationships<\/em> with those companies. This should not be construed as investing advice. This article may\u00a0contain\u00a0an affiliate link to an investment product. We may receive a commission through this link when you join the partner. <\/em>Our full disclaimer<\/a>. <\/em><\/p>\n<\/div><\/div>\n
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\n Index Name<\/strong><\/td>\n Index Type<\/strong><\/td>\n YTD (%)\u00a0<\/strong><\/td>\n 1 Year (%)<\/strong><\/td>\n<\/tr>\n \n Russell 2000<\/td>\n Small-cap<\/td>\n -16.45<\/td>\n -4.88<\/td>\n<\/tr>\n \n S&P 500<\/td>\n Large-cap<\/td>\n -5.77<\/td>\n +10.62<\/td>\n<\/tr>\n \n S&P 400<\/td>\n Mid-cap<\/td>\n -14.50<\/td>\n -2.57<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n \n
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\n\t\u00a0Ready to start investing? Choose a\u00a0platform below.<\/span><\/h3>\n<\/p>\n