Big Investors, Unfazed By Techs' Roller Coaster, Buy 'FANG' Stocks

Ted

FYI: Large investors, whose high exposure to large-cap technology stocks boosted their returns during the first quarter of the year, are doubling down on their investments even as stocks like Apple Inc (AAPL.O) and Facebook Inc (FB.O) stumble.

Fund managers such as T Rowe Price and Federated Investors, who were already overweight the sector, said they were buying beaten-down so-called 'FANG' stocks – Facebook, Amazon.com Inc (AMZN.O), Netflix Inc (NFLX.O) and Google-parent Alphabet Inc (GOOGL.O) - during a two-day selloff that marked the largest tech sector decline in nearly a year.
Regards,
Ted
http://www.reuters.com/article/us-usa-tech-investors-idUSKBN1942E3

rforno

If they're rebalancing or perhaps modestly adding to positions (as the TRP guy is doing), okay. If they're going hog-wild and overloading existing positions or dumping massive AUM into new ones, given this was a 2-day "blip" in the grand scheme of things I am not sure that's a good idea at the moment. Remember that BTFD works great in a bull market .... until it doesn't.

But then again, I don't have & manage OPM, just my own.

Sven

Most investors who own broadly diversified US stock funds are likely have enough exposure to the FAANG stocks. Yes, they have out-performed S&P500 this year. Their valuation is also well above the broader index. I still think better entry points are ahead.