Head of multi-asset investments at Rathbone Investment Management David Coombs has warned on the "hype" around so-called FAANG stocks and said investors risk "spectacular" losses if they continue to value these companies in the same way.
Tech stocks Facebook, Apple, Amazon, Netflix and Alphabet's Google (FAANG) have exploded in value over recent years and now account for more than 10% of the S&P 500. Coombs' comments come after Apple became the world's first ever $1trn market-cap company earlier this month. The next largest is Alphabet's Google, which has a market cap of around $884bn. According to AJ Bell, the five FAANG stocks are now valued at nearly 19% of US GDP (at 31 July 2018). Neil Goddin: Is the FAANGs story long in the tooth? The manager, who is also a member of Rathbones' investment executive committee a...
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