This is one of the most vicious out-of-high-growth-into-value rotations I have seen in ages...and it is led by FAANG.
Who in a million years would ever think that FAANG would be value but when you look at the move out of the cloud kings and into this group it is so patently obvious what's happening that it's almost other worldly. Yes Apple's (AAPL) stock, at 14 times earnings is a very low multiple as is, now, Facebook (FB) at 22 times earnings and Alphabet (GOOGL) at 24 times. Amazon's (AMZN) above 1,700, no real multiple but it is pretty strong.
Again, I wish there were a better thesis than one has gotten so much cheaper than the other and the leaders have become carrion. But the one thing I would emphasize that it isn't just tech. Take a look at Burlington (BURL) which report this week. That's hated, too. As are anything health care.
As I said in our morning video, I want to take the other side of the trade but you have to wait until the selling runs its course. You never buy day two of a rotation.
That's much better.
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