Wall Street and market pundits love to come up with acronyms for certain investing strategies and groups. The term that took off in 2015 was FANG, for Facebook, Amazon Netflix and Google. Other terms that have taken off in the past have been the Nifty Fifty, BRIC, MINT, 4 Horsemen and so on.
The FANG stocks did incredibly well in 2015. If you average out these four stocks, the year-to-date gains in the FANGs was 88%, versus right at flat for the Dow Jones Industrial Average and the S&P 500.
But what about 2016? It turns out that finding the great bulls in the stock market is becoming harder and harder. A recent view of 14 Wall Street strategists from Goldman Sachs, Merrill Lynch, JPMorgan, Credit Suisse, Wells Fargo and other top firms is calling for minimal gains in the S&P 500 in 2016. If the market remains choppy, the question that remains is whether the FANG stocks can come anywhere close to outperforming by this massive amount again.
24/7 Wall St. looked into the upside that got the FANG stocks to their height today. We also considered the downside potentials that could act as a drag ahead. These are not at all meant as predictions, and these are not forecasts that these risks will actually come true. Sometimes it is worth looking at both sides of the coin in major gainers to determine if upside remains.
24/7 Wall St.Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
