Seems its the same mentality as former bell-weather stalwarts of the past, like IBM, JDS Uniphase, Kodak...the slogan of "Past performance is not indicative of future returns" often is slow to sink in, on the "herd".
FANG stocks have lost their characteristic mojo, but investors are sticking with them
The FANG block of tech giants — Facebook, Amazon, Netflix and Google’s parent Alphabet — are mostly in the red for the trailing 12 months despite their strong year-to-date comeback.
The backdrop for big tech is turning unfavorable from the government crackdown to the U.S.-China trade war to a global economic slowdown.
“The question is how much we are transitioning from a Wild West environment for big tech to something that’s more regulated and governed,” says Jeff DeGraaf, founder and chairman of Renaissance Macro Research.
https://www.cnbc.com/2019/07/19/fang...with-them.html
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Seems its the same mentality as former bell-weather stalwarts of the past, like IBM, JDS Uniphase, Kodak...the slogan of "Past performance is not indicative of future returns" often is slow to sink in, on the "herd".
CURRENTLY 30% C, 20% S and 50% G (as of COB 04/11/2024) 1st April IFT
Weatherweenie's Account Talk
Teddy Roosevelt: Patriotism means to stand by the country. It does not mean to stand by the president or any other public official. Retired on November 30, 2023 with 30+ years of service.
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Weatherweenie's Account Talk
Teddy Roosevelt: Patriotism means to stand by the country. It does not mean to stand by the president or any other public official. Retired on November 30, 2023 with 30+ years of service.
I thought it was supposed to be FAANG....Facebook, Amazon, APPLE, Netflix and Google ?!?
There are 10 types of people in the world. Those who know binary, and those that don't!!
Retired on December 31, 2018!!
Consolidation = complete control!
% of SP500 market cap held by largest 5 stocks.
MSFT, FB, AAPL, GOOGL, AMZN
My question is how these companies hold up in a recession. Will people spend more time on Facebook when unemployed? Will people continue with their streaming subscriptions? Will there be as much profit in advertising revenue?
I think as long as they can continue putting it on their credit card they will not cut back. A recession will be a nice test to see if subscription companies can keep growing (NFLX, Peloton, Disney+, Spotify, Hulu, etc.)
ERVtZyZWAAAld0y.jpg
Rich got richer, but let's be honest, the top five were positioned perfectly for a global shutdown.
top5.jpgIs this series signaling either a correction or a bear market now? A correction is more likely than a bear market, in our opinion. That’s because bear markets tend to be triggered by credit crunches that cause recessions.
A credit crunch was certainly underway during late February through March 23. But on that fateful day, the Fed tossed away its bazookas, kept its helicopters grounded, and instead started to carpet-bomb the financial markets with B-52 bombers loaded with trillions of dollars of cash. Lots of money poured into the Magnificent Five.
https://www.linkedin.com/feed/update...94692576280576
Impossible to outperform as a fund manager unless you have these holdings. Hence, nearly every fund has FAANG holdings. Why bother watching the Dow, just watch AAPL.
Chart below does not include MSFT.
fang.JPG
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EFA (I Fund) (delayed) (Stockcharts.com Real-time) |
BND (F Fund) (delayed) (Stockcharts.com Real-time) |
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