Surprise! Most FAANG Stocks Are Historically Cheap
The past two months have been nothing short of brutal for investors, with the stock market responding to the unprecedented coronavirus disease 2019 (COVID-19) pandemic. With nearly a third of all global COVID-19 cases originating in the U.S., stringent mitigation measures were needed to slow disease transmission, leading to the shutdown of nonessential businesses. This nosedive in economic activity is what's behind the S&P 500's 34% swan dive in less than a five-week period.
During bear markets, it's not uncommon to see high-flying stocks, growth stocks, and those with high price-to-earnings (P/E) ratios take it on the chin. This would include the so-called "FAANG stocks" that have pretty much led the market higher for much of the past decade.
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Source Fool.com
