A picture tells a thousand words……and this is the talk of the “talking heads"
This is a great visual (via visualcapitalist.com) of what the “FAANG" stocks (Facebook, Amazon, Apple, Netflix and Google) have done from their 52 week highs through last week 11/21/18. My, my, how quickly assets in the financial markets can go from the “penthouse to the outhouse" or from "hero to zero" if you rather. This is the true picture of the carnage that has occurred among recent tech leaders. Each “FAANG” stock has officially dropped in to “bear” market territory-defined as a drop of 20% or more from a recent high. Facebook has fared the worst, down almost 40%, while Google is off “only" 20.7%. These stocks are the favorites of many younger investors, who have taken it on the chin of late. Granted, these stocks have earned huge profits over the last five years and many mutual fund managers have also experienced larger than life pullbacks in their portfolios due to the popular ownership of these companies. Our Lily Portfolios are so, so boring!We measure, we react and therefor we are roughly 50% in cash in many of our diversified portfolio’s. We even got close to shorting the markets in one of our more aggressive strategies. Look for details in our next quarterly newsletter because “markets change and so will we”.