By Darya Rudz
Updated
3 min read
At present, all eyes are on coronavirus vaccine stocks. As a result, FAANG stocks are in the middle distance. However, this is temporary. According to Cramer, when the pandemic is over, it all will get back to normal.
On Monday, CNBC’s “Mad Money” host Jim Cramer shared his opinion on the current market conditions and made a prediction on the upcoming trends. According to Cramer, despite the current shift from high flying tech stocks to small and laggy shares, FAANG stocks are still the most reliable for investment.
As Cramer said, the recent take-off of Dow Jones, S&P 500, and Nasdaq Composite indices was partly due to a good performance of Facebook Inc (NASDAQ: FB), Amazon.com Inc (NASDAQ: AMZN), Apple Inc (NASDAQ: AAPL), Netflix Inc (NASDAQ: NFLX), and Google LLC (NYSE: GOOGL), the five most prominent and successful tech companies on the planet.
Jim Cramer said:
“Let’s remember what actually took us to these record levels in the first place because those stocks are still the best in show.”
He further said:
“There are some stocks that become a lot less attractive when the world goes back to normal, but not FAANG. They don’t care who’s in the White House or how soon we get vaccinated.”
Cramer has also stated that FAANG stocks proved to be the winners in the COVID-19 pandemic. Therefore, he does not see the reasons to rotate from those blue chips to untrustworthy small stocks.
He said:
“I’m so sick of hearing that it’s time to rotate into the small caps, or the oils, or the cyclical smokestack stocks.”
At present, all eyes are on coronavirus vaccine stocks. As a result, FAANG stocks are in the middle distance. However, this is temporary. According to Cramer, when the pandemic is over, it all will get back to normal.
Initially, it was the FANG acronym that stood for Facebook, Amazon, Netflix, and Google. Then, a new acronym was coined by investors to lay emphasis on the collective strength of the five companies that have recorded recurring successes during a long period of time. In FAANG stocks, Apple Inc. is included.
There is also a FAAMNG term. It includes the six most powerful tech giants: Facebook, Apple, Amazon, Netflix, Microsoft Corporation (NASDAQ: MSFT), and Google. All of them have been showing an upward trend in stock price. However, some analysts say they are overpriced. Anyway, FAAMNG stocks are promising a good return: some specifically for 2020, some on an even longer time span.
In 2020, traders coined a new term, FANGMAN. This acronym represents the 7 biggest tech-based countries on the globe and includes NVIDIA Corporation (NASDAQ: NVDA). In 2019, the collective market capitalization of all 7 firms was almost $4.2 trillion.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Darya is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding the ways blockchain can change different industries and bring our life to a different level.
