Tag: FAANG

MAGA is the New FAANG

Do you remember what the FAANG stocks are, or were? MAGA is the New FAANG.

by Fred Fuld III

Do you remember what the FAANG stocks are, or were?

Facebook (FB) (META), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google (GOOG) (GOOGL).

Jim Cramer created the FANG acronym back in 2013 for Facebook, Amazon, Netflix, and Google, because he said that these tech stocks were “totally dominant in their markets“.

However, in 2017, he added Apple due to its growth, adding an extra A to the acronym, changing it to FAANG.

Yet, several changes have taken place since then. First, Facebook has changed its name to Meta,along with its symbol, so the letter M has to be used in the acronym.

Second, Netflix is not really a tech stock. It is actually considered an entertainment company in the communications services sector. Plus, many investors no longer consider it a growth stock if you look at the return over the last few years.

Just in the last twelve months, Netflix has dropped over 61%. If you had bought the stock at the beginning of 2018 and held it, you would have barely broken even. If you had bought in in 2019, 2020, or 2021, and held it, you would have a good size loss.

Finally, even though Google changed its name to Alphabet, nobody calls it that, and the company is still keeping the same stock ticker symbols beginning with the letter G.

So that gives us Meta, Amazon, Google, and Apple as the leading tech stocks.

Or to abbreviate it, MAGA.

Now that should be easy to remember.

Disclosure: Author owns MSFT, AAPL and AMZN.

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The Yummies are Causing the All-Time Stock Market Highs

Many have wondered why the stock market continues to make all-time highs, almost every day. This exceptional rise may be due to the Yummies, the Young Upwardly Mobile Millennials. Yes, the Millennials, also known as Generation Y. Many traits have been ascribed to this generation, but you don’t ever hear the members referred to as being invetor-oriented.

So let’s look at the facts. Legg Mason Global Asset Management, the 20th largest asset manager in the world, produced the 2017 Global Investment Survey, and the Summary of U.S. Results are very enlightening.

For example, did you know that Millennials invest more in non-cash investments than the Generation X or the Baby Boomers? As a matter of fact, 77% of Yummies apply their funds toward these assets, versus 75% for Gen x and 69% for Baby Boomers.

Let’s look at some definitions before continuing. Legg mason consideres Millennials to be between the ages of 18 and 35, Gen X at age 36 to 52, with Baby Boomers ranging from 53 to 71 years old.

Some other interesting factoids about the Yummies. They invest three times as much as Boomers in non-traditional investments. Plus, a far greater percentage of Yummies put their money into investment real estate than the Baby Boomers.

But what is most amazing is the fact that 11% of the Yummies invest in gold and precious metals versus only 7% of the Gen Xers and a measly 2% for the Baby Boomers.

When the respondents were asked which investment categories they believe offer the best opportunities over the next 12 months, 46% of the Yummies said domestic stocks, with Gen X and Boomers closely agreeing, both at 42%. International stocks came in second as an investment opportunity in the opinion of the Millennials.

Finally, 87% of Yummies have saivings, investments, or both but only 81% of Boomers have these assets, and just 75% of Millennials.

Many wonder why the FAANG stocks, Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Google (GOOG), continue to rise. So now you know. If you are wondering who is driving up the price of stocks and cryptocurrency, you need look no further than the Yummies.

by Fred Fuld III

Disclosure: Author owns AAPL and AMZN.