Cory's Insights – Wed 13 Jan, 2016
The FANG stocks are no longer a beacon of light
Only a couple weeks ago investors were talking about the FANG stocks in a positive light. They were the main reason why the major indices closed the year anywhere close to even. But 2016 has changed that narrative.
Some of the FANG stocks are down over 10% in only one and a half weeks! We do not need to worry about these companies going out of business but the pullbacks are showing a much larger movement of capital away from equities.
Our friend John Rubino from the Dollar Collapse website posted this breakdown of the FANG and related stocks. It is not hard to see that investors are exiting these stocks at rates that have not been seen in many years.
– Dollar Collapse
If this selling continues the overall markets will be further weighed down. With no sign of investors starting the buy the dips this all has the potential to result in a liquidity trap for all investors… but if and when is a very tough thing to call. I continue to believe it is best to not be in these stocks as the downward trend is accelerating today.