EP200214 RichOnPlanning - PLANNING MATTERS - FAANG STOCKS W Allison Ostrander - Simpler Trading

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When more success planning matters radio on planning matters when you dependent fiduciary financial investment and retirement planning firm and the Rochon planning podcast is intended to keep you informed and up-to-date on the news the information and the strategies that you can use to help achieve your financial goals always encourage you to subscribe to the podcast on your favorite platform or give us a call if you got questions, something that you'd like to ask personally or something that you'd like addressed on a future edition of the podcast. You can always call at 919-300-5886 919-300-5886 or you can visit us online rich on planning.com rich on planning.com and we often have special guests join us on the program and we are now privileged to be joined by a very special guest Allison Ostrander and she is going to be talking to us about the fangs stocks in an really the tech sector of the economy. Allison welcome into planning matters radio. We appreciate the time. Now that the fangs stocks as they're known kind of the big five of the tech sector they really had a lot of influence over the market in in recent years, and I've even heard reports that those stocks alone have accounted for a majority of the growth of the overall market absolutely impacted and all of the thing back I buffered them had a 200% return within the last five years, or about that, though they are great investment for those of us that have been able to jump into it and pulled on. This is companies like Apple and Amazon alphabets, Facebook, Netflix, Google these stocks, though, are we seeing a repeat of what happened in the tech bubble with people and bought those some time ago and continue to hold them through that appreciation. Yes, they appreciate it. But now, wouldn't they be overweighted to some extent.

I'm very much a technical trader so I like to go hurt and right now all of these symbols are still unpublished timeframe. One of the thank Dr. Facebook on a daily chart in outgoing consolidation actually thought the daily bubble to get back and look at a weekly or monthly timeframe down recently to put in the last few weeks went right down to the court level and held them out starting the backup don't really start to break these weekly and maybe monthly support level I'm looking to remain bullish on the technical and point That I do think there's a difference between the tech bubble that happened in the late 90s and early 2000, or thing today. In the late 90s and early 2008, you know, a relatively new industry at the well on the tech side. You are but bones and all the other technology that continued to come in and I think investors weren't quite sure you know what good is going to come back data or how it was going to be used in advertising or anything else around that I think overall the companies were still trying to find a sledding and figuring out how to take all of the information gathering and be able to make it profitable for the company.

Now that were years ahead write and leave the established mark computers and selling user that is not costly exactly gathering it. How do more work to where really something that they know what I had to put in third email programs into their website into their searches and so because of that, I think there is a lot more profitability to be had within the companies around their information on the new technology that they continue to repeat to where it is not to me, at least as of right now it's not showing any find the tech bubble that going to ask load and then will do theologies come rushing back down to the bottom of the charts as you hold it on Facebook we stick to that one for a moment obviously Mark Zuckerberg has Artie been called into question for Facebook's practices of selling user in consumer data and Facebook executives Mark Zuckerberg himself. I believe just recently stated that they they've just about reached maximum capacity for displaying ad space before their users. I guess tire of it which limits their capacity for generating new revenue, correct, and I think the other thing that lightly hurt that it is a social media platform. Now they tried to man their faith. They certainly think like document, which is a virtual reality kind of relation thing to try and help you know find other sources of revenue being mainly a social media platform. They need to stay on top of that, and everything, but certainly with the younger generation. You need to hop onto one thing and then immediately hop on to something else, especially as a kid you know you don't really want to hop on the same media platform. Your parents might be on Facebook though it is great. A lot of the older generation are the ones that currently use it so they moved like buying Instagram, for example, you know, having a sledding in that but they're gonna have to stay on top of it like that. I'm sure Instagram will start to go off and the next version of social media like tick-tock will be the main one that people use. So I'm always a little bit more hesitant on the social box and fell face but definitely has a better holding up one like snap. For example, but it still makes me hesitant on investing long-term and like typically on my main main options trader and Facebook. I keep my options trade shorter dated just to take advantage of the shorter-term mood something like Amazon or Netflix.

I don't mind jumping in longer-term trade positions are potentially even shared and playing that for a longer five year run to the sides of her that Facebook is exploring other options other avenues for generating revenue. For instance, maybe providing some infrastructure fiber network and and and basically the hard way or behind providing service to institutions or municipalities. So I think there are explorations into other avenues, if not already implementation into some of those but I do believe as looking exclusively at the social media aspect of it itself you're probably right and that something that seems to evolve very quickly. I mean we went from not having the cell phones at all. Two decades ago to Facebook being almost a daily if not hourly institution. For many users, but now it's it's evolving past that absolutely have the right to be able to try and find other courses of revenue. I think they realize you heart be hard to keep users on a tight nor younger users trying go on to their platform when there are so many other ones out there and ready for them to use right one but are clearly connected to where their parent can jump in and check out their profile or something like that and had a teenager I remember back in the day I left my privacy will share there is some of those things where Facebook are going to have hurdle trying to address them. Now, thankfully, but not quite personally for me at will. You know, keep me slightly more on edge on Facebook compared to some of the upper think box out there. When you look at these bank stocks. I mean, yes, we see the meteoric rise, and they certainly are wildly utilized in popular but they still don't seem to be offering as stable or predictable or necessary product or service as say what the top stocks were maybe just 20 to 25 years ago your Cisco's your your General Electric's your your exons are things that GE Procter & Gamble that provided hard goods services that people use on a daily basis. Much like we do consume some of this technology today, but it seems like that could change very quickly to to a different company with a fickle consumer market for like that that will come out that could end up having that edge, but I think higher way that consumers can feel that the well has changed to so that you know going just for those products something like Amazon for example, they provide a whole platform readily available for you to get at the web services. Of course they have their own user data so that a company like Amazon, for example, to find a frank talk to me, even though it being a huge move to the upside with a billion-dollar company on very much like a bullish recently on a monthly timeframe you back in 2008, a bit stronger buckle back in the market and an Amazon when you look once again at that longer timeframe. It was actually a much needed call back as many of us traders know you know you don't be symbol straight up now at the might of think I could do that recently, but even that had a call back right though, things that go up and they go back down the tech support and on a monthly timeframe. We were very much overextended we needed to collect the part we finally got that and 19 get help support we consolidated and allow other indicators are momentum or exhaustion kind of to reset itself and now actually getting quite a few signal currently that show it about to go back up into a bullish trend so let's talk about those gaps is for a moment. I mean Tesla is it problematic that they have not shown profitability in their model to this point, but I work it does seem like a lock or not.

Recently, the investor will feel that I though you know on a bit aspect that certainly concerned about perpetrators aspect. It doesn't concern you have much of a knot in it as a long-term, fair trade, but more an option straight. I'm not concerned about that after the prologue Tesla and so for that reason, I'm certainly okay with continuing to follow the trend at least right now to the up and I do think that short-term there still to be a bit more consolidation pullback, but the longer-term bill remain bullish technical is 15, 20 years ago a company that has dumped as much money in as as Tesla has in in R&D in research and in marketing and in everything they do without having anything for it for profit. The company may have been out of business. At this point is Tesla's simply floating based on its ability to remain popular and for people new investors to continue dumping money in. I think that is a part of the reason that I do not have an early edge on their market, which is the electrical car right currently working whole global phenomenon, with concerns about global warming, with concerns about the environment level and so being one of the early people and and having the ability of an even though you know in terms of profit each quarter. We are not seeing it. The fact they'd been able to remain a household name is a good place to be well of their sector where they were able to jump in early. They were able to get consumer's eyes on them and so even though all these other companies are trying to catch up with electrical car Tesla with the name brand alone might be the go to that many people find themselves trying to buy especially when they're trying to make more affordable model where the more average American jump into a car like that stucco Amazon. I mean certainly popularity it's it's the tale of two different extremes. They are when it comes to discussion about the taxes that this corporation pays about the that the effect on the jobs market that has in the press it it doesn't seem to be a highly favorable whose there, but it is also actually widely used and utilized by millions and millions of Americans and and putting hi's drain on the retail sector. Actually, as a result of how many people are going to their purchasing decisions through Amazon or similar companies so how does that weigh in. In the outlook for the company longer-term to remain in a bullish trend because I know many people go to it to use it and have a lot of different youth is right. You might go to it strictly for the chocolate today should you know, grid shipping and everything like that. You might use that for me.

And often, for example, I have same-day delivery on some items. So a newborn child. I felt I might be extremely useful to be able to order diapers and have them drop off at the door without me having to take her to the store and figure out how to do that are to get formula or anything else that I might need for her and so does affect are extremely low, but They Also Ct., Street platform.

They also have twitch that they bought at gaming streaming platform. It's really entices the unit could not only jump on and the last thing I really like about Amazon is that they think is all interconnected. So with their prime membership, you get the stream you want to do today should you get benefit from their twitch and filled entices people to stay on it.

I do think that they are going to run into some issues in regards to the workforce.

We heard conditions about people in the warehouses of the distribution center that do not count that right they need break they need reveille better pay. They need to be able to have some health benefit. There as well, but I do think that's going to be addressed in the future on the icon I deter people from signing up her prime membership and keeping it certainly prime numbers don't don't don't plan to hold public opinion does weigh on on some of these companies and and that can change. It is, it is fickle, but all in all time to go war room to grow for the bank stocks room to grow like us on Facebook still kind of that one. Well, but a lot of the old Amazon like Apple. They help you were not.

They recently thought the great pullback that the court and now they're showing signs of going back into a bullish trend.

I am concerned slightly shorter term with companies like Apple, for example, in the think box just because they do have a lot of feelings within China direct kind of concerning that Keynote does make me have a little bit lighter right, lighter capital and some of these positions without starting off at the elite Sheriff and fell, but I guess that they really support.

I'm not quite the technical and a lot of them personally find the taking back to the upside. Once again, so as far as the sector feel pretty positive.

You are paying attention though more to total market and in systemic risks absolutely right, Allison Ostrander and we appreciate your time Allison working people find out more or or or get more of your information they can find me at the trading were on her website for trading.com I am usually the option room, the card option classes finding the trading day on the website itself again Allison Ostrander in similar trading.

We appreciate your time. Thanks for being here and providing your insight well. If you are in the market and investing for growth. It's always worth paying attention to the hot stocks in the companies that are doing well and certainly the fangs stocks Facebook Apple, Amazon, Netflix, Google, those have led the way over much of the last decade and accounted for a lot of the growth of the overall market and certainly many mutual funds that include those as part of their core components. Now you always have to keep things in balance. You always have to keep things in perspective.

Diversification is key as we certainly saw back in the tech bubble in 2000, a large part of the reason why so many lost so much is because they had become overweighted in the tech sector specifically so could we be seeing the same thing here. Maybe it's a different time. Maybe it's a different model for these businesses and certainly there is a lot to say that they have more room to grow but also something to to always be mindful of, and be cautious if you'd like to look at your portfolio and make sure you are in proper balance, like talk about your goals about your risk tolerance and and really drill down on some numbers in your portfolio how much are you positions to gain how much do you stand to lose if the market continues to go up or if we have a down-to-earth pick up the phone. Feel free to to be in touch with me at Rochon Flanigan.

I am Peter Rochon I am an independent Sherry financial investment planner love to hear from you Rich on planning.com is call 919300569190056 also like when the content is