This year’s most crowded trade on Wall Street is Big Tech. The FAANG stocks, as measured by the NYSE’s Fang+ index have climbed by 32% year to date. According to Bank of America, the trade is the most overextended since 2015. Robin Wigglesworth writes in the FT:
The New York Stock Exchange’s Fang+ index, which includes a mix of US and Chinese tech companies, has climbed more than 32 per cent this year.
However, some investors think the rally in “Big Tech” shares is overdone. Betting on the Faangs in the US and China’s Bats has been identified as the most crowded trade for sixth months running in an investors survey conducted by Bank of America. It was judged the most overextended trade since the long-dollar trade of late 2015.
“There’s always a concern that investors are getting sucked in at the wrong time, but today’s technology sector is very different from that of the technology bubble 20 years ago,” Ms Hooper said.
Read more here.
Jeremy Jones, CFA
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