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ETS’s – NDQ and FANG

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    ETS’s – NDQ and FANG

    Hey James and Team Thanks again for your excellent ongoing commentary I'm very bullish US tech ( for the medium/long term ) - the sensational six have all got strong growth prospects , with most investing a large percentage of their revenue in R&D . They have little or no debt , and dont look that expensive on a PE basis ( much cheaper than our local tech ) I currently hold positions in NDQ , and FANG , the latter being more concentrated. Do you think this is a good time to add, wait for a pullback, or average in? Difficult question I know Is there another way to increase my exposure to US Tech ? General advice only Many thanks

    Answer

    Hi David,

    I definitely prefer the “Sensational Six” over the “Magnificent Seven” with Tesla (TSLA US) not keeping pace with its peers. Like yourself we are fans of US Big Tech over the medium/long term hence we would turn to the technical picture and simple risk/reward outlook for optimum entry levels:

    The FANG+ Index has already corrected between 13 & 15% on two occasions over the last 12-months and statistically its likely to do so again in 2024, i.e. it not always going to be as “Hot” as it is today hence we would consider buying into 10/15/20% retracements, the scaled in approach that we often mention.

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    US NYSE FANG+ Index
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