META - The Party Is Over For FANG+ Stocks - Are You Prepared?
2024-05-11 07:00:00 ET
Summary
- Value stocks have underperformed growth stocks since the Great Financial Crisis, but the era of low inflation may be coming to an end.
- The FANG+ stocks, including NVIDIA, Meta Platforms, Tesla, Amazon, Alphabet, Microsoft, and Apple, have a combined weighting of roughly 30% in the S&P 500.
- The market is targeting specific growth stocks, but the advantage of the Mag 7/FANG+ stocks may be fading as other sectors catch up in terms of earnings growth.
Introduction
If there's one thing I have discussed in countless articles since last year, it's my focus on value stocks, as I expect a rotation from "growth" to "value" stocks.
One of the (frequently updated) charts I often use is the one from JPMorgan ( JPM ) below, which shows that value stocks are very attractive relative to growth stocks.
As we can see, value stocks have underperformed growth stocks since the end of the Great Financial Crisis, with some periods of temporary outperformance....
The Party Is Over For FANG+ Stocks - Are You Prepared?