Stock Market Crash: The Dow Has Fallen Nearly 2,500 Points And FAANG Stocks Have Lost A TRILLION Dollars In Value
by Michael Snyder
TheEconomicCollapseBlog.com
November 21, 2018
Thanksgiving week was not supposed to be like this. Normally things are slow in the days leading up to Thanksgiving as investors prepare to gorge themselves with turkey and stuffing as they gather with family and friends. But this year the stock market is crashing, and Wall Street is in panic mode. On Tuesday, the Dow Jones Industrial Average closed at 24,465.64, which is nearly 2,500 points lower than the all-time high of 26,951.81 that was set in early October. But as I noted yesterday, what has been happening to tech stocks is even more dramatic. Each one of the FAANG stocks is now down by more than 20 percent, and they have combined to lose more than a trillion dollars in value. We haven’t seen anything like this since the financial crisis of 2008, and at this point all of Wall Street’s gains for 2018 have been completely wiped out.
Fear is a very powerful motivator, and right now a lot of investors are feverishly getting out of the market because they are afraid of losing their paper profits.
One analyst is describing what is going on as a rush for the exits…
“The highways will be crowded this evening as the Thanksgiving rush will begin in earnest, but this morning investors are rushing for the exits,” Paul Hickey, co-founder of Bespoke Investment Group, wrote to clients on Tuesday.
But for many tech investors, the truth is that the cattle have already left the barn.
Just check out how much market capitalization the “big five” have already lost. The following numbers come from CNBC…
Facebook: $253 billion
Amazon: $280 billion
Apple: $253 billion
Netflix: $67 billion
Alphabet: $164 billion
When you add those figures together, you get a grand total of 1.02 trillion dollars.
If you were alive when Jesus was born, and you spent a million dollars every day since then, you still would not have spent a trillion dollars by now.
A trillion dollars is an amount of money so vast that it is difficult to comprehend, and those that hesitated to sell at the peak of the market mania are never going to get that money back.
And many believe that the tech losses are just beginning because several of these companies have now entered “death cross” territory…
This could be the final nail in the coffin for the FANG trade.
Three of the companies within the big-tech quartet have entered into death crosses, with Facebook, Netflix and Google parent Alphabet seeing their 50-day moving averages cross below their 200-day moving averages.
We shall see what happens in the days ahead, but right now things do not look good.
Apple was supposed to be the strongest and most profitable of the FANG companies, but slowing sales have suddenly changed everything. In fact, Goldman Sachs just cut their price target for the stock…
Goldman Sachs slashed its Apple price target on Tuesday. The firm said in a note there is a “weakness in demand for Apple’s products in China and other emerging markets,” as well as a disappointing reception for the iPhone XR model.
The Rest…HERE
