For the past decade, the stock market has been on fire. For the past 10 years, the icon has become Dow Jones industry average, Benchmark S&P 500and technology-dependent Nasdaq Composite returned 166%, 209%, and 390%, respectively.
However, a significant portion of those gains come from FAANG shares.
With FAANG I am referring to:
With the exception of Facebook, which went public in 2012, the 10-year trailing returns for these companies are as follows:
- Facebook: 762%
- Apple: 967%
- Amazon: 1,670%
- Netflix: 1,430%
- Alphabet: 780%
Imagine having the weakest horse in the group (alphabet) and still getting an annual average of 24% over a decade. That’s more than three times the historical average annual response rate for the S&P 500.
While FAANG shares have been unstoppable for a long time, some look more attractive going forward than others. As we move headlong into May …