- James Tharin, CFA
Watching the FANGs for an Entry Point
According to Bespoke Institutional, stocks broke a 58 day streak of trading without a market move of over plus or minus 1% on August 10th. Since then stock market volatility has picked up some but not dramatically. Volatility can be a good thing for alert investors looking for attractive entry points to buy stocks on sale. Below is a market cap weighted chart of Facebook, Amazon.com, Netflix and Google, also known as the FANGs. The chart shows that while the group is up dramatically, price action stalled in the early summer and has pulled back some since then. Furthermore, the months of August and September have historically been tough months for stocks. While we don't think that the group or the market is quite through running its corrective course we do think that astute investors might want to keep an eye on the group for a potential bottom in the coming months to accumulate or add to their favorite names. But make sure you do your homework and know what you own or consult with your financial adviser. And don't forget the cardinal rule of speculation - always use a stop to control your risk.