Are the FANG Stocks Dead?

Have the FANG stocks lost their bite? $FB $AMZN $NFLX $GOOGL

My thought? No.  The market is selling off and those stocks that had the biggest gains are seeing the biggest pullbacks.  I view all of these stocks as generational game changers.  They have changed the way we live our lives.

Facebook is how we keep in touch with each other.  It has replaced emails and chat.  It has replaced late night phone calls.  We share our lives with each other on Facebook (and the other companies owned by the social media giant).  I view $FB as a stock that 10 years from now, many people will have wished they bought and held the stock.

Amazon has replaced the mall.  In some cases, it has replaced the grocery store and corner drugstore.  It’s where we buy stuff.  Remember when you had to wait 6-8 weeks ordering merchandise from a mail order catalog?  2 days.  Anything you want.  Same day in some areas. Oh, and they do other things, too.  The stock has already soared. 

Netflix and chill!  Cord cutting is for realz.  Does anyone have the patience to watch a weekly episodic TV show anymore now that Netflix has introduced us to the wonders of binge watching?  My greatest fear with the stock is competition.  It’s still coming and growing.  But $NFLX is the king of streaming.  And they put out some great shows!  Anyone else watch Black Mirror or binging Luke Cage?

The Google!  This company is going strong with search and video.  The search page is hit multiple times a day for most of us, and has settled many a game-day argument amongst buddies.  “Name all the undefeated NCAA college football teams?”  Anyone else wasted an evening going from YouTube video to YouTube video, watching crazy dog vs. cat videos or a news clip on a current event?

Game changers.  These stocks are how we spend our time.  Advertisers want to spend money where we spend our time.

Of these stocks, I believe $FB will be the strongest grower over the next 10 years.  This doesn’t mean any of these stocks will go straight up for the next 10 years.  All stocks are subject to moves by the Federal Reserve on interest rates, recessions, mergers/acquisitions, competition, and random acts of God.

Election and Stock Market Update

Is Hillary or Trump better for the stock market? What the heck happened with Fitbit and Facebook earnings? Is McDonalds doing the right thing? Blue jeans... Black Mirror... And more!

My Election Prediction

My thoughts on current status of 2016 election, Hillary Clinton, Donald Trump and the impact to financial markets.

And my 2016 prediction!

The Cubs Won–Buy Stocks

If the Cubs win the World Series, you’re supposed to buy stocks.

Let ‘er rip!

Cubs Win!

• The Chicago Cubs have won the world series!
• Donald Trump may have passed up Hillary in some of the polls – But are the polls worth a darn?  If you read Twitter, you have folks accepting polls blindly, and some saying the methodology is all hogwash.  Pick and choose!
• $FB – Ugh, Facebook tanked after earnings.  Yes, revenues going through the roof.  But…  I guess nobody cares about that right now. 
• The market in general selling off.  Some blame the shifting political polls.  Some blame the thought of rising interest rates.   I think the latter more likely than whatever happens Tuesday.
• By the way, I finished watching Black Mirror on Netflix.  Wow. Bees.  The Bees!
• By the way, I think Hillary is going to win.  But momentum is with Trump right now.  Will it be enough to win the battleground states?
• Anyway, I do have a little cash and looking for some names to buy.  Everyone always wants a dip to buy.  This is one.  Like I said in the podcast the other day, I hate to buy stocks at the highs and now here we are.  In correction mode!

Saturday's Probing Randomosities

• The election seems to be rigging the stock market these days. Friday’s big election story was the FBI revelation about The Weiner Device.  While investigating Weiner, the FBI found some new Hillary emails. While this is a “new” story, haven’t we all accepted that Hillary is a bit crooked?
• Probe.  Yah… “Probe.”
• The Saturday morning Fox Business Block, aka “The Cost of Freedom,” has been derailed the last few weeks with election coverage.  So instead of Gary B. Smith and Gary Kaltbaum, today we get Neil Cavuto interviewing one of the Duck Dynasty guys about the election.  Really?  (Sorry if I don’t know the names of the Duck Dynasty cast).
• I saw Kevin O’Leary on CNBC opining on Tesla ($TSLA), and that it’s way overvalued compared to a typical car company.  I have to agree.  The more I listen to that guy, the more he makes sense.  Good sense?  Nonsense?  We will have to wait and see.
• Meanwhile, Michigan beating up on Michigan State this morning.  I’m sure they’re trying to increase the point differential to be large enough to negate the impact of a blocked punt.  Just thinking out loud!
• I know folks are opinionated about the election.  Many saying that if the other person wins, it’s the end of the country.  Just keep in mind that the government is set up with checks and balances.  There are vetoes and filibusters and Supreme Court rulings that tend to filter out the extreme stuff.  Tend to…
• Americans setting a record for gasoline use! “…thanks to low gas prices and an unprecedented number of drivers.”  Awesome!  So in the age of electric cars, hybrids, and overall better fuel economy, gasoline use surging!  Something to think about as gasoline prices edge upwards.
• If you’re a fan of The Walking Dead, last Sunday’s episode was a mixed bag of intenseness, sadness, and awesomeness.  Way to start a season, right?  I am excited to see where this goes.  Although I wish I could binge watch the season instead of dragging it out week-to-week.
• Happy Saturday, all!

Saturday Market Thoughts

• Stock market has been a little frustrating this year.  Not that it has been bad, but it has been underwhelming.  Stuck.  But it feels like this for almost two years now!
• One in five millennials has not had a Big Mac.  Hey I had my first and only one three years ago. I’m not sure its a huge problem. The few $MCD near me seem crowded all the time these days, and I think breakfast is doing it.
• Thank goodness for dividends, right? Although those have been taking a hit recently as people seem to expect rate hikes coming, and the competition from bonds will be enough to get people to switch from dividend stocks back to bonds.  Are you buying that?  That’s the thought pattern anyway.
• If you were thinking about buying some Disney stock, would you do it now or wait until closer to year end in case tax loss selling comes in play?  Or buy half of $DIS now, and hope it goes down so  you can buy some more later!!!  Booyah!
• Hmm… Politics.  All over the place in the news cycle. Vote early and vote often.
• Not that the Fed will really hike rates, though.  GDP low.  Inflation low.
• Sell in May didn’t really work this year.  At least dividends were collected in stocks.  I never did much selling.  A little.  Raised some cash waiting for a sell off that never came.  Seems like it would have been a decent year to trade rips and dips.  The range…