The Market has Lost its FAANGs

(Facebook, Apple, Amazon, Netflix, Google)

Until recently, U.S. stock market action was dominated by a handful of very large technology-based companies. They drove the returns and became such a large part of the S&P 500 index that returns became increasingly dependent upon them. Their valuations soared and for the first time the era of trillion-dollar companies was born. Momentum begets momentum and there seemed to be no end to their upward trajectory. Growth was the driving factor, but recently this changed.

No trend endures forever. A resurgence of value being important to investors was inevitable; it was always a matter of when, not if. That seems to be happening. The leading tech companies are not being abandoned by investors, there just are many other possibilities now. So many other companies are now coming to the fore of market leadership. These include industrial, material, and even financial companies. The result is a broader, healthier stock market. Stay steady my friends.

The Lonely Bull