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November 19, 2018 | Delirious Assets Getting Much-Deserved Drubbing

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

As cryptocurrencies continue to tank, this cycle’s most deliriously valued ‘FAANG” stocks also took another big whack today, as shown here courtesy of CNBC.

Not surprisingly, as shown below, these much-loved and widely owned names have, so far, fallen more than 20% from their recent 52-week highs.  If past mania cycles are prologue, these stocks might be halfway through their eventual decline, as die-hard fans buy dips all the way down, before abandoning them in horror near cycle lows.

 

Those of us who have learned through decades of real-life investment cycles to adhere to a value discipline have been out of favour longer-than-average this time, and it has been tedious for some to wait.  But as I wrote here last year Value’s long winter will end in spring again–bank on it.   Great opportunity is coming, and it is very exciting to anticipate.

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November 19th, 2018

Posted In: Juggling Dynamite

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