Executive Buying Newsletter March 15, 2026

Investing in the stock market requires a clear plan and disciplined approach. This bi-monthly newsletter highlights a focused portfolio strategy featuring five key stocks—Amazon (AMZN), Chevron (CVX), United States Oil Fund (USO), Verizon Communications (VZ), and the Utilities Select Sector SPDR Fund (XLU)—alongside a significant cash allocation of 37.5 percent. This mix balances growth, income, and stability while maintaining liquidity to seize future opportunities.

Why This Portfolio Mix Matters

Investors often face the challenge of balancing risk and reward. This portfolio combines:

• Growth potential through Amazon’s e-commerce and cloud dominance.

• Energy sector exposure with Chevron and USO, capturing oil market dynamics.

• Reliable income from Verizon’s telecom services.

• Defensive stability via XLU’s utilities holdings.

• Liquidity and flexibility with 37.5 percent cash, ready for market shifts.

  
  

This allocation is designed to navigate market volatility while positioning for long-term gains.

Amazon (AMZN): Growth Engine in E-Commerce and Cloud

Amazon remains a powerhouse in retail and cloud computing. Its Amazon Web Services (AWS) segment drives significant profit margins, supporting reinvestment in new technologies and logistics.

• E-commerce leadership: Amazon controls roughly 40% of the U.S. online retail market.

• Cloud growth: AWS holds about 33% of the global cloud infrastructure market.

• Innovation focus: Investments in AI, automation, and delivery networks keep Amazon competitive.

  
  

Despite market fluctuations, Amazon’s diversified revenue streams and strong cash flow make it a core growth holding.

Chevron (CVX): Energy Sector Strength with Dividend Appeal

Chevron offers exposure to the energy sector with a strong balance sheet and consistent dividends.

• Integrated energy company: Chevron operates across upstream, midstream, and downstream segments.

• Dividend yield: Around 3.5%, attractive for income-focused investors.

• Capital discipline: Chevron maintains steady production while managing costs.

  
  

Energy demand remains resilient globally, and Chevron’s position in oil and gas production supports portfolio diversification.

United States Oil Fund (USO): Direct Oil Price Exposure

USO provides a way to invest directly in crude oil prices without owning physical barrels.

• Oil price tracking: USO aims to reflect daily changes in West Texas Intermediate (WTI) crude oil prices.

• Volatility hedge: Oil prices often move independently of stocks, offering diversification.

• Short-term trading tool: USO suits investors looking to capitalize on oil price swings.

  
  

Including USO adds tactical exposure to energy markets, complementing Chevron’s operational focus.

Verizon Communications (VZ): Stable Telecom Income

Verizon delivers steady cash flow and dividends from its telecom services.

• Market position: One of the largest wireless carriers in the U.S.

• Dividend yield: Approximately 6%, providing reliable income.

• 5G rollout: Investment in 5G infrastructure supports future growth.

  
  

Verizon’s defensive nature helps balance risk in the portfolio, especially during economic uncertainty.

Utilities Select Sector SPDR Fund (XLU): Defensive Stability

XLU invests in utility companies, known for steady earnings and dividends.

• Sector composition: Electric, gas, and water utilities.

• Dividend yield: Around 3%, with lower volatility than the broader market.

• Economic resilience: Utilities provide essential services, maintaining demand even in downturns.

  
  

XLU adds a layer of safety and income, smoothing portfolio returns over time.

The Role of 37.5 Percent Cash Allocation

Holding 37.5 percent in cash may seem high, but it serves several strategic purposes:

• Market flexibility: Cash allows quick response to new opportunities or market corrections.

• Risk management: Reduces overall portfolio volatility.

• Liquidity: Ensures funds are available for rebalancing or unexpected needs.

  
  

This cash position balances the growth and income stocks, making the portfolio adaptable.

How to Use This Portfolio Strategy

Investors can apply this portfolio in several ways:

• Core holding: Use the five stocks and cash as a foundation, adding other positions as desired.

• Rebalancing: Adjust allocations every two months to maintain target weights.

• Market timing: Increase cash during high volatility, deploy it when valuations improve.

  
  

Regular review and discipline are key to maintaining the portfolio’s effectiveness.

Practical Example of Allocation

For a $100,000 portfolio, the allocation would be:

• Amazon (AMZN): 12.5% ($12,500)

• Chevron (CVX): 12.5% ($12,500)

• United States Oil Fund (USO): 12.5% ($12,500)

• Verizon Communications (VZ): 12.5% ($12,500)

• Utilities Select Sector SPDR Fund (XLU): 12.5% ($12,500)

• Cash: 37.5% ($37,500)

  
  

This structure balances growth, income, and liquidity.

Monitoring and Adjusting the Portfolio

Track key indicators such as:

• Earnings reports of the individual stocks.

• Oil price trends affecting CVX and USO.

• Dividend announcements from VZ and XLU.

• Market conditions influencing cash deployment.

  
  

Adjust allocations based on performance and market outlook every two months.

This portfolio offers a balanced approach combining growth, income, and defensive elements with a significant cash reserve. It suits investors seeking steady returns while maintaining flexibility to adapt to changing markets. Review your holdings regularly and consider your risk tolerance before investing.