We love an acronym but welcome to Facebook, Apple, Amazon, Netflix and Google (now Alphabet Inc). These are the darlings of the US stock market, outperforming most of the other sectors. Interestingly enough valuations are broadly as they were a year ago despite a dip in share price. There are pressures on the tech models as witnessed by Facebook, Trump’s comments on Amazon and Euro pressure for a higher tax take. However, in general these companies are heavily investing for the future. My point is, despite some pretty big rises in the US stock markets over the past 12 months, these rises are built on rock and not hype.
Don’t forget Microsoft or the big American banks that are in turnaround and growth phase.
As ever, a broad worldwide and multi asset approach is the key to successful investment.
This is not a recommendation and please call us for advice before investing.