US Stock Market Looks Terrifyingly Weak If You Remove These 6 Super Stocks
Six massive tech stocks are six-handedly glossing the US stock market. | Source: Shutterstock; Edited by CCN
But if you look beneath the surface, there’s a scary trend lurking. The entire surge relies on just six stocks: Facebook, Amazon, Apple, Netflix, Google, and Microsoft. Remove these tech stocks and the global stock market looks very different: it’s flat.
Record highs? If you subtract Facebook, Apple, Amazon, Netflix, Google, and Microsoft, the #stockmarket has done nothing for the past 16 months.
— Peter Valente (@ValenteMusics) May 3, 2019
Stock Market’s Scary Reliance on Tech Stocks
The worrying data was spotted by Bianco Research and refers to the FAANG group of stocks (plus Microsoft).
Disruptive tech stocks have hit headlines in the last 12 months with Apple, Amazon, and Microsoft all hitting $1 trillion valuations at some point. Facebook continues to beat expectations despite a flood of privacy scandals. And Netflix has doubled its market capitalization in a little under 18 months.
Earnings for this small group of stocks has doubled in the last five years, but the wider economy has stalled.
Every Other Sector Is “Unimpressive”