October 2022 Commentary: De-FAANGed

Summary

• The reversal of FAANG stocks’ long-term dominance has loomed over markets this year.
• The FAANG stocks ended October with year-to-date losses of more than $3.8 trillion in market capitalization – a stupefying amount larger than the gross domestic product of the United Kingdom.
• October returns highlighted the evolving dynamic between big tech and energy stocks, the latter of which have outperformed the former by a ferocious 108% so far this year.
• Equity market prices increasingly appear to be anticipating a recession as fourth-quarter earnings expectations are lowered – and even enter into negative territory.

Read and download the commentary here.