ECONOMIC SILUET: ____ is the new FANG

Kamis, 24 Oktober 2019

____ is the new FANG

THU, OCT 24, 2019

YOUR AFTERNOON NEWS UPDATE AND MARKET ACTION FROM CNBC

AS OF THU, OCT 24, 2019 • 12:07 ET

DJIA		26777.92
		-0.21%	-56.03

S&P 500		3007.90
		+0.11%	+3.38

NASDAQ		8173.84
		+0.67%	+54.05

EDITOR'S NOTE

We've been having some fun with this one in the office.

The FANG trade--Facebook, Amazon, Netflix, Google (now Alphabet)--that Jim Cramer coined all the way back in 2013 (!!!) feels like it's run its course.

Let's remember, this thing became so popular, successful, and consensus, that it spurred the creation of its own index. For awhile, fund managers just had to own this basket, sit back, and enjoy their outperformance.

But it's now been a year and counting since these stocks have hit new highs. Facebook and Amazon are more than 10% down from their peaks; Netflix has lost about a third of its value; and Google is the outperformer by only being down single-digit percentages from its all-time highs last year.

And so, out with the big tech platforms, in with the...big consumer platforms, it seems. We've been playing around with TAJ (Target, Apple, J.P. Morgan)...CHAPT (Chipotle, Home Depot, Apple, Pulte, Target)...Jim himself likes WATCH, for Walmart, Amazon, Target, Costco, and Home Depot.

I just like the macro implications of all this. Consumer names are the new momentum trade? Something to muse over.

Send in your best ideas! I'll see you at 1 p.m...

Kelly

Kelly Evans
@KellyCNBC

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