Is DAWN A Viable Investing Strategy???
FANG is the acronym for four high-performing technology stocks of Facebook, Amazon, Netflix and Google. The term was coined by CNBC's Mad Money host Jim Cramer and used first an episode of Mad Money back on February of 2013. The acronym was later changed to FAANG to include Apple.
Mark Tepper, CFP(R) is President and CEO of Strategic Wealth Partners, a national wealth management firm headquartered in Cleveland, OH. Mark specializes in the wealth management and financial planning needs of high net worth families and entrepreneurs. Mark has a new acronym for people to chew on.
The era of "FANG" stocks may have come to an end and been replaced with "DAWN," Strategic Wealth Partners chief Mark Tepper said on a recent CNBC "Trading Nation" segment.
DAWN
DAWN, a play on the slogan "it's always darkest before the dawn," is Tepper's investment theme at a time when travel, sports, and schools are all being canceled due to the coronavirus pandemic, he said. The "DAWN" strategy consists of "D" for Domino's Pizza, Inc. (NYSE: DPZ), "A" for Activision Blizzard, Inc. (NASDAQ: ATVI), "W" for Walmart Inc (NYSE: WMT), and "N" for Netflix Inc (NASDAQ: NFLX).
All of the companies are themes on people hunkering down at home. They can order pizza, play video games, load up toilet paper or ramen and enjoy a TV show or movie, he said.
"This is all the stuff you do when you don't want to leave your house, and right now, that's where we're headed," Tepper said.
From the Market low in the Great Recession back in 2009 to this past February 2020, Facebook, Amazon, Netflix and Google have gained 446%, 6,810%, 3,470%, and 940%, respectively. So does Mark have a point, is it time to take profits and move on? The answer is no because of passive investing.
Index investing is a buy-and-hold strategy for long-term investment horizons and the epitome of passive investing. All you have to do is invest in a fund that mimics the broader market. Because the technology sector makes up about 25% of the S&P 500 and because technology stocks are the driving force behind pushing society forward, it’s a great opportunity to dollar cost avg into FANG.
If you don’t want to invest in the FANG individually, one can look at investing in the Invesco QQQ ETF that tracks the Nasdaq 100.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advice. Do your own research before making investment decisions.
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Thank you very much for giving me the vote
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