A few clients have asked me about the recent stock market volatility in the broader market in general and with a few select stocks in particular which contain a high amount of short interest (such as AMC Entertainment and GameStop). As such, I thought I would share my reply with everyone as you may be interested in my thoughts and our strategy going forward.
Growth and momentum investment strategies have been driven markedly by FAAT MAN stocks - Facebook, Amazon, Alphabet (Google), Tesla, Microsoft, Apple and Netflix. These companies have experienced exceptional returns in recent years and subsequently carry very high valuations. As of this writing, the tech behemoths have a larger market capitalization than fifty-five of the remarkable global brands which we currently own.