Got $5,000? Buy These 2 Stocks and Hold Until Retirement
If there is a bright side to this bear market, some good stocks have come way down in value and make for good buys when the market inevitably heads north. As a long-term investor, you should measure performance by years, not quarters, so a not-so-pretty year-to-date return right now could become a great investment when you look back in 20 years.
While there is still a lot of uncertainty in the markets, there are two stocks in particular that have dropped in price that look like strong candidates to thrive over the long run: Amazon (NASDAQ: AMZN) and Bank of America (NYSE: BAC). A $5,000 investment now in these two giants would probably look pretty good when you retire.
Amazon, the world's largest online retailer, made some news in June when it did a 20-for-1 stock split. That means that one share of Amazon, which was $2,447 at the time of the split, would be split into 20 shares. So, if you owned shares of Amazon, you now had a lot more, as you owned 19 more for each share you had. If you don't own Amazon, it gives you an opportunity to buy this mega-cap stock at a much more reasonable entry price -- about $122 per share at the time of the event. Among other reasons for the stock split, the move made Amazon more accessible to more investors.
Source Fool.com
