Portfolio Ideas

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>>> How about a new FAANG? This grouping outperforms the tech giants

MarketWatch

March 23, 2022

By Steve Goldstein


https://www.marketwatch.com/story/how-about-a-new-faang-this-grouping-outperforms-the-tech-giants-11648033932?siteid=yhoof2


The FAANG grouping of stocks has been so 2021.

Facebook parent Meta Platforms FB, +2.86%, Amazon.com AMZN, +0.15%, Apple AAPL, +2.27%, Netflix NFLX, +0.33% and Google parent Alphabet GOOGL, +2.38% have struggled this year, thanks to rising interest rates, and in the case of Facebook and Netflix, softer demand.

The NYSE FANG+ NYFANG, +1.56% index has slumped 11% this year.

Doug Kass, the president of Seabreeze Partners Management, proposes a new FAANG:

F - for fuel
A - for agriculture
A - for aerospace and defense
N - for nuclear
G - for gold and critical metals.

These all are plays that have benefited from Russia’s invasion of Ukraine and the ensuing sanctions that have sent commodity prices surging and the world scrambling to wean itself from Russian supplies.

A MarketWatch-compiled average of his new FAANG assets, equal weighted using popular exchange traded funds, yields a 27% return for 2022.

Kass says he’s long the GLD GLD, +0.73% exchange-traded fund and has invested in stocks in the other sectors, and expects supply/demand imbalances to keep boosting these themes.

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