A good part of the reason that the markets have been on such a run can be traced to a few mega tech stocks. They are collectively called FANG. Facebook, Amazon, Netflix, and Google make up this group of stocks. This will be a picture post, showing how their prices have appreciated in this bull market run, a perspective on their valuations and a look at how they a currently performing.
One other group that I’m going to show you is the Semiconductor Index
Here is a more recent view, there a now a few cracks in the foundation. Perhaps we do see an intermediate correction? Perhaps the markets rally after this correction and hit new highs? When will the heavy debt and military spending start to cripple our economy? I don’t think anyone knows the answer to those questions, but, it does make sense to keep it in the back of our minds. Mortgage rates now at 5%, car loan defaults to subprime borrowers could become an issue. The point that I’m trying to make is that you truly need to consider the risks that might be out there. Bear markets can be a vicious creature, and if you are a senior you don’t have the time recoup your losses.
Here’s a look: