Corporate American SuperstarsBy: Mitchel Anthony
Facebook, Amazon, Apple, Netflix, and Google (The FAANG) have been the pride of corporate America for many years and have been at the top of the list of most growth portfolios. Their innovation has changed the world and given America reason to be proud of what capitalism can produce. Every economic cycle has growth leaders but these great companies have set a standard that will be remembered for decades if not centuries to come. There are always doubters and those that believe the growth leaders in our economy are somehow cheating or taking advantage of consumers of their products. We have seen this talk in the past and undoubtedly will see it again.
The political mess in Washington somehow believes that Facebook, Amazon, and Google should be broken up because they have become too big and powerful and as a result are stifling competition. This has investors concerned and their stock prices have waned as a result. Apple is suffering from a different type of political problem. They are caught up in the middle of a trade war that impacts prices for their products. As a result the growth outlook for the FAANG has clouds on the horizon.Read more
The news flow over the last few weeks has centered on Trumps attempts to level the playing field with America’s adversaries and partners. This would include China, Mexico, and much of Europe. The game at play involves global trade and Trumps desire to better position America as a major exporter of goods and services to the emerging middle classes in China, India, and Asia. Investors are always worried about change and this game at play could put America back into a whole new cycle of amazing growth similar to the nifty 50s. Thus far we have seen more pessimism rather than optimism. As a result the markets have fallen 5 to 7% on this recent news flow. Synthesizing the right decisions out of these developments is our challenge as we try to stay ahead of where investors will go over the next year as they watch Trump do what he does best - negotiate and deal. Read more
