buying fang stocks

JulieRight

all those fang stocks. amazon, Facebook etc are they worth buying now? they look very inflated on the chart.. big peaks, right at the top of the market.. amazon for example has been dotting between 2900 and 3500 for the past 6 months.. cant see it going higher.. can you?? and then there's all that talk about inflation and a crash .. honestly dont know what to do.. buy now or wait for them all to crash but will I be waiting forever??

Secret2ndAccount

But if you wait for them to go down, and they go up, then you have missed out on the gains. If they start to go down you won't want to buy them while they are falling. Then when they start to go back up you will wonder if you've missed your chance or if it's just a temporary pause in the downhill trend. ... ...

Here's my view. If you think they are well run companies, with a large, preferably growing market, with good products, and a  likelihood of good sales and profits over the next few years, then go ahead and buy. If they go down, hold your nerve, or buy some more if you have the money.    It would be a strange world where customers turned their backs on Apple Facebook and Google.

Central banks are pouring money into economies in USA, Europe and UK.  Household wealth is up, pandemic or no. They are looking for somewhere to get a return on that excess money. Meanwhile interest rates hover around zero. People who want a return are forced to take risk. Demand for risk assets increases. Therefore the price of risk assets is pushed up. TINA. There Is No Alternative. Can't last forever, but do you want to sit on the sidelines while p/e ratios push up all across the developed markets? Company after company is issuing / will issue results right now which massively beat the same period last year. GDP forecasts are unprecedentedly high. I'm not predicting a smooth ride, but I am predicting markets higher at year's end.

bostonerimus

Step away from the keyboard Julie, you are asking all the wrong questions and doing none of the sensible things.

Voyager2002

No-one can possibly know, so the sensible strategy is to spread your risk. If you buy a global index fund a bit of your money will be invested in the FAANGs, while much of your investment will be directed into the companies that are likely to do well if the FAANGs do badly.

HappyHarry

Right on cue, Netflix takes a tumble ... https://www.bbc.co.uk/news/business-56826190

Grenage

I am surprised by Netflix's drop; it was obviously that their uptake boon was short-lived.

Thrugelmir

Disney is a serious competitor. People are only willing to pay for so much content. Becoming a crowded marketplace where it's difficult to impose premium pricing. . 

maxsteam

JulieRight said:

 honestly dont know what to do.. buy now or wait for them all to crash but will I be waiting forever??

you could even not buy them, ever.

Zanderman

maxsteam said:

JulieRight said:

 honestly dont know what to do.. buy now or wait for them all to crash but will I be waiting forever??

you could even not buy them, ever.

Yes, indeed.  That's exactly what I do and will carry on doing.  Saves having to worry about fang stocks.

GeordieGeorge

JulieRight said:

all those fang stocks. amazon, Facebook etc are they worth buying now? they look very inflated on the chart.. big peaks, right at the top of the market.. amazon for example has been dotting between 2900 and 3500 for the past 6 months.. cant see it going higher.. can you?? and then there's all that talk about inflation and a crash .. honestly dont know what to do.. buy now or wait for them all to crash but will I be waiting forever??

It sounds like you know little to nothing about stocks, investing, trading, or economics. You should think incredibly carefully about why and how you intend to put your money into single stocks.