Rob Arnott Talks About a Fanmag Bubble

In a recent interview with Financial News, Research Affiliates partner Rob Arnott argued that the surge in valuations of the largest U.S. tech stocks is unlikely to continue, adding that the concentration of assets in a small number of companies is posing a threat to the bull market. “Will these stocks produce such impressive growth that they will justify their current market cap, or are these implausible growth expectations? We do not have a crystal… Read More

Are the FAANGs Really a Supergroup?

Facebook, Apple, Amazon, Netflix and Google parent Alphabet “can’t get away from each other,” says an article last month by Bloomberg columnist Nir Kaissar, who argues, “But look closely and it’s no longer clear why they should be lumped together at all.” For example, Kaissar points out, the Global Industry Classification Standard (GICS) classifies neither Amazon nor Netflix as tech companies–but rather tags Amazon as a retailer and Netflix as an entertainment company. As of… Read More