Our first thought in regard to how far high tech will fall is that the stocks are overpriced. And, passive investors are pouring money into index funds that do nothing but bid up the prices of the FANG darlings. The market has started to correct and, based on earnings reports, tech stocks will either continue to fade or will recover a bit. But, there are a couple of other issues that bear consideration in regard specifically to Amazon.com and Facebook. There is the possibility that Trump will want to go after Amazon in order to protect and bring back small […]
Our concern about high tech stocks has been that they seem overvalued as the bull market ages. The market seems to have taken notice of this concern as the FANG stocks corrected and have not recovered their losses. And now a Facebook data breach has scared the market. US News reports that Facebook and other tech stocks are falling.
A sharp loss for Facebook is dragging technology companies lower Monday as U.S. stock indexes skid. The social media company is facing new criticism related to privacy issues following reports a data mining firm working for the Trump campaign improperly obtained and […]
Of late we have written about switching investment focus from growth to value as we have been ruminating about the possibility of a stock market crash, economic recession, and collapse of the real estate market, all caused by a trade war. Materials stocks have been hurt by Trump’s announcement of tariffs on steel and aluminum. The bull market has been historic and is likely to cool off if we are lucky and collapse if we are not. How can you invest and not get hurt by a trade war? Our sister site, Profitable Trading Tips, provided a few ideas in […]
The stock market rally this year has been largely driven by the high tech darlings known as the FANG (Facebook, Amazon, Apple, Netflix and Google). The first take of many investors after Trump’s election was that industrial, construction related and bank stocks would benefit from his proposed economic stimulus measures. However, all of that has been slow to come if not absent as scandal and inefficiency drag the White House into the muck. Now the realization seems to have hit the market that the high tech darlings may be a little too highly priced and they have all dipped together. […]