After the recent days of heightened market volatility I was curious to check out how the S&P 500 component stocks have faired over the last 12 months:
Hmm, looks to me as if the bull market is mainly hinged on those five MANGA stocks (Microsoft, Apple, Netflix, Google, Amazon; FB is out and having a rough time, deservedly I have to say).
How would the S&P index look like excluding those MANGA stocks? Would people still have talked about the longest Bull market recently?
These stocks remind me of Icarus from the Greek mythology who was flying too high and too close to the sun. They might have little internal support if price begins to fall.
Consequently, at some point, that circumstance is likely to spark panic selling, i.e., a liquidation event.
If you are a potential investor in these wonderful companies, it might be prudent to wait for the panic to develop. Value is temporarily created by the emotions of other traders and exploited by those with sufficient mental discipline to take advantage of it.
By the way, the above market map looks quite different for the last 3 months:
Check it out yourself. The link to that neat finviz.com is here