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Thursday, November 29, 2018

Why The Bloodletting In FAANG Stocks Is Just Getting Started

By: Barbara Kollmeyer
MarketWatch


Hide behind defensives? That doesn’t seem like such a crazy strategy lately as investors wait to see if worries about the U.S. economy turn into real problems in the coming year.

Tuesday’s session offered the most recent evidence of that as health care, consumer staples and utilities drove the gains for the S&P 500. Compare these numbers—the Utilities Select Sector SPDR XLU, -0.09% is up 4% for the quarter, while the Technology Select Sector SPDR XLK, -0.18% has slumped over 12%.

Another burning question for investors is whether the bloodletting has stopped for shooting-star growth names—Facebook FB, -0.34% , AAPL, +0.39% Amazon AMZN, -0.12% Netflix NFLX, +0.34% and Google-parent Alphabet GOOGL, -0.11% —which have been shoved into bear territory after helping to drive a nearly decadelong bull market.

Another burning question for investors is whether the bloodletting has stopped for shooting-star growth names—Facebook FB, -0.34% , AAPL, +0.45% Amazon AMZN, -0.12% Netflix NFLX, +0.30% and Google-parent Alphabet GOOGL, -0.04% —which have been shoved into bear territory after helping to drive a nearly decadelong bull market.

Our call of the day from analysts at Canaccord says stay hunkered down. They see the outperformance for defensives as just getting started, because FAANG underperformance is also in its early innings.

Read more at MarketWatch.

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