FAANG Stocks Lose Their Bite

December 12, 2022

Enjoy this week's "Investor Insights," a weekly newsletter that highlights the financial news you need to know and provides tips and tricks to help you make better investment decisions.

The economy has fallen into a recession 9 of the past 12 times the Fed tightened monetary policy by raising interest rates. The stock market has fallen around 30% in all recessions going back to 1929. ₁

The bear market has been tough on FAANG stocks, with companies like Google dropping 36%, and Meta falling 66%. Even with these declines, however, the group still accounts for more than 10% of the entire S&P 500’s weighting. ₂

The largest banks still do not pay much for the cash in savings accounts. Since 2019, Americans have lost out on $291 billion in interest by keeping their savings in the 5 biggest banks. That total grows to $603 billion when going back to 2014. ₃

Americans are cutting down on holiday gift spending. Polls showed that consumers plan to spend an average of $867 on gifts this season, down from the $932 average gift-spending estimate in October.₄

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WSJ - "Investors Grow More Confident Fed Will Pull Off a Soft Landing"
Bloomberg - "Investors Call Time on FAANG Stock Dominance After Nasdaq's Rout"
WSJ - "The $42 Billion Question: Why Aren't Americans Ditching Big Banks?"
Barron's - "Inflation Is a Grinch. Americans Are Trimming Their Holiday Gift Spending."

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Disclosure: This information is furnished for the use of Glen Eagle Advisors, LLC, Glen Eagle Wealth, LLC, and their clients and/or contacts. It does not constitute the provision of investment advice to any person. It is not prepared with respect to the specific objectives, financial situation, or particular needs of any specific person. Investors reading this commentary should consult with their Glen Eagle representative/financial advisor regarding the appropriateness of investing in any securities or adapting any investment strategies discussed or recommended in this newsletter.

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