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This week we’re looking at a concept so good it’s become an obsession.

The idea is to treat our trading account like a savings account.

Instead of putting our free money into a bank, we put it into the market.

The example was a successful millionaire who says he buys more SPY anytime he has free money. SPY is his savings account.

Why did he choose SPY (the S&P 500 ETF)?

Most likely, it was a result of the endless brainwashing by the index fund industrial complex.

He probably didn’t know he was allowed to choose something else.

But should he have?

Let’s see.

Remember, if he chose SPY and started with $10,000, put $200 in each month, and bought SPY shares with that $200, from September 2013 to September 2023 his $10k would have turned into $89,000:

Woohoo. 2022 would have been darn scary, but mostly an easy journey.

Now, what if he chose QQQ instead? QQQ incorporates the hot stocks (the high-growth stocks) while keeping the safety of diversification inside of its ETF format.

What would have happened then?

If he used QQQ he would have $109,000 instead of just $89,000. While still scary in 2022, that’s a significant upgrade.

Can we do better?

How about the Semiconductor ETF, SMH? People don’t think of this ETF, but it’s a monster. And it has been for a long time.

Here’s the Curve:

With SMH, his $10k would’ve turned into $166,000. Yet another big upgrade while keeping the “safety” of an ETF. Single stocks can be risky because it’s all-0r-nothing. ETFs help with that.

That said, let’s do a single stock!

Here’s everyone’s favorite, AAPL:

His same $10k turns into $219,000 if he bought $200 worth of AAPL each month from 2013-2023. It’s not as “safe” as an ETF but it makes way more than using SPY.

In summary, it’s a fantastic concept.

But using this concept on SPY is one of the worst options he could choose.

We’ll try another (more profitable) option in the next Newsletter.