FANG Sector Losses – Facebook, Amazon, Netflix, Google parent Alphabet
October ended as one of the worst months since the 2008 financial crisis. The S&P 500 lost $1.91 trillion in October. Losses were spread widely across industry sectors. October was the worst month for the S&P 500 since September 2011. Big technology stocks — most well-known as FANG were among the hardest hit. Amazon ended the month down 20.2 percent, and Netflix ended down 19.3 percent. Investors fled both after earnings reports. Facebook and Alphabet finished October down 7.7 percent and 9.7 percent, respectively.
FANG has lost $300 billion in market value since mid-September this year.
There can be little doubt that a FANG correction or even possibly a FANG bear market is underway.
The FANG sector slide has been especially painful for investors who have purchased these stocks on margin or have purchased other securities that are tied to the performance of these technology shares.
The recent market volatility has exposed unsuitable allocations in accounts invested in FANG and or other technology sector securities that have resulted in significant losses to many investors.
When asked about why account values have dropped, brokers often respond by blaming it on the market instead of recognizing that inappropriate allocations are actually to blame.
If you are an investor that lost more than $100,000 in FANG related losses you should consider all legal options. If you wish to discuss your particular situation and the potential for the recovery of your investment losses, or you have information of interest, please contact us for an evaluation of your potential case.