http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction Should You Invest in the FANG on the Correction? The long-running bull market is starting to correct. We, and many others, have suggested that investors may want to get out of growth stocks and switch to value stocks in preparation for a market crash or at least a painful correction. The rationale is that value stocks are companies with low debt, cash in the bank, and property unencumbered by excessive debt. However, the basis of intrinsic stock value is forward looking earnings. And, the best earnings in recent years have come from tech stocks like the FANG (Facebook, Amazon, Netflix, and Google-Alphabet). Protected from a Trade War with China One of the expected contributors to a market correction, or worse, is the evolving trade war with China. We looked at what you can invest in and not get hurt by a trade war. It turns out that Facebook, Amazon, Netflix, and Google (Alphabet) either do not do business in China or have a very limited presence. Even though these stocks have become somewhat pricey in the current market they could not be directly hurt in a trade war with China. CNBC quote Cramer of Mad Money who is saying basically the same thing as he suggests that investors buy given-up-on FANG stocks. The FANG cohort benefits from having very few ties to the Chinese market, Cramer said, with the use of Facebook, Netflix and Google’s services almost entirely blocked by the government and Amazon facing a sprawling competitor in Alibaba. Second, “the Federal Reserve is bent on squelching inflation wherever it can find it, ” the “Mad Money” host said, referring to the central bank’s rate hike agenda. “When that happens, the companies with the highest price-to-earnings multiples are the ones that benefit,” he said. Thus, the growth stocks that had become very pricey will look very attractive after a reasonable correction.

1. Should You Invest in the FANG on
the Correction?
By www.ProfitableInvestingTips.com

2. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
The long-running bull market is starting
to correct.

3. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
We, and many others, have suggested
that investors may want to get out of
growth stocks and switch to value
stocks in preparation for a market crash
or at least a painful correction.

4. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
The rationale is that value stocks are
companies with low debt, cash in the
bank, and property unencumbered by
excessive debt.

5. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
However, the basis of intrinsic stock
value is forward looking earnings.

6. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
And, the best earnings in recent years
have come from tech stocks like the
FANG (Facebook, Amazon, Netflix, and
Google-Alphabet).

7. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
Protected from a Trade
War with China

8. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
One of the expected contributors to a
market correction, or worse, is the
evolving trade war with China.

9. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
We looked at what you can invest in
and not get hurt by a trade war.

10. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
It turns out that Facebook, Amazon,
Netflix, and Google (Alphabet) either do
not do business in China or have a very
limited presence.

11. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
Even though these stocks have
become somewhat pricey in the current
market they could not be directly hurt in
a trade war with China.

12. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
CNBC quote Cramer of Mad
Money who is saying basically the
same thing as he suggests that
investors buy given-up-on FANG
stocks.

13. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
The FANG cohort benefits from having
very few ties to the Chinese market,
Cramer said, with the use of Facebook,
Netflix and Google’s services almost
entirely blocked by the government and
Amazon facing a sprawling competitor
in Alibaba.

14. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
Second, “the Federal Reserve is bent
on squelching inflation wherever it can
find it, ” the “Mad Money” host said,
referring to the central bank’s rate hike
agenda.

15. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
“When that happens, the companies
with the highest price-to-earnings
multiples are the ones that benefit,” he
said.

16. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
Thus, the growth stocks that had
become very pricey will look very
attractive after a reasonable correction.

17. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
Slowing US and Global
Growth

18. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
The stock market recently fell on news
that both Caterpillar and 3M projected
slower growth.

19. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
Both of these companies have a huge
international presence and are
bellwethers of the world and US
economies.

20. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
Both of these companies easily qualify
as value stocks but both will suffer a bit
as a trade war and excessive debt
affect economies around the world.

21. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
In the meantime, people still watch
home movies from Netflix, incessantly
use Facebook, “Google” information,
and buy everything including the
kitchen sink via Amazon.com.

22. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
These companies will be hurt less or
not at all as the US-China trade
relationship changes significantly.

23. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
Is It Time to Buy
Facebook?

24. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
After years of stellar growth, Facebook
is down 10% this year.

25. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
There are regulatory issues that could
affect the stock but it is still a broadly
used platform and a money maker.

26. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
CNBC’s Trading Nationnotes
that Facebook has probably hit
bottom and is a strong buy.

27. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
Facebook is the only stock of the group
negative for the year.

28. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
It has dropped 10 percent in 2018, the
bulk of those losses sustained after its
notorious $120 billion drop in market
cap in late July after its worrisome
second-quarter earnings statement.

29. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
“If the market begins to roll over, you’re
actually going to see the Googles and
the Netflixes, some of that fast money,
the momentum money, start to sell in a
little bit of a panic move, but that
money has already disappeared from
Facebook,” said Maley.

30. http://profitableinvestingtips.com/stock-investing-tips/should-you-invest-in-the-fang-on-the-correction
Thus, it may be a good idea to invest in
FANG on the correction with the first
target being Facebook which may have
already hit its bottom.