The parade of technology stock acronyms
has become more ostentatious: FANGs,
FAANMGs, BATs, HATTS, SuNRiSe etc. All
in all , western investors were fooled into
investing into ‘Rainbow economies’ based on
massive healthy returns
Yet the acronym phenomenon is important as it helps
foster speculative bubbles. That appears likely in
2018 with the FAANMG expected to add two-
thirds to their price and the BHATTS to almost
double. But the lack of coherence in the acronym
grouping poses a risk , as does the respective earnings.
True, they each benefit
from the ubiquity of technology and the internet,
but in vastly diferent ways , and different in economic
culture , ultimately the returns diminish and failure
costs begin to rise. Most investors lose sight of this
as they chase the next bubble.
Having treated these
firms as successful via press media
momentum plays its role , in a
downturn investors may not know why they
should own them , since there values differ
from ours in the US & EU.