The US stock market is an interesting place at the moment. With the S&P500 having returned 346.7% over the past decade, led in the main by the giant tech stocks, there are concerns we are at a turning point.
With valuations of these companies high, inflation looking stickier than first assumed, and reopening momentum in full swing, there are question marks over whether these companies can continue to deliver. The FAANGMs (Facebook, Amazon, Apple, Netflix, Google and Microsoft) represent just under a quarter of the S&P 500 and some $8.8trn of market cap and therefore can have a big impact on index returns. Data over the past eight years from Yardeni Research shows this quite starkly; since the end of 2012, the S&P 500 ex-FAANGM has returned 140% in dollar terms while the FAANGMs themselves ha...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
