- 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.
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