Gadfly
FANG Stocks Lose Some Bite
Average free cash-flow yield rivals Treasuries.
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Want to buy an investment that's yielding considerably less than a 10-year Treasury but with much, much more risk? Apparently everyone does.
Shares of the the so-called FANG block of technology companies have rocketed up this year, rising nearly 40 percent, four times the gain of the S&P 500. And the trend doesn't seem to be ending. The technology heavy Nasdaq Composite Index raced ahead of the broader S&P 500 again this week. On Wednesday, Bank of America released a survey of fund managers who said Nasdaq stocks were now the most overcrowded trade.