The parade of technology stock acronyms has become more
ostentatious: FANGs (Facebook, Apple, Netfix and Google), FAANMGs
(Facebook, Amazon, Apple Microsoft, Alphabet), BATs (Baidu, Alibaba,
Tencent), HATTS (Hon Hai, Alibaba, Tencent, Taiwan Semiconductor
Manufacturing Company, and Samsung Electronics), SuNRiSe (Softbank
Group, Nintendo, Recruit Holdings, and Sony) and so on.
Perhaps the multi-decades lows in equity volatility has simply left some analysts with
too much time on their hands.
Yet the acronym phenomenon is important, not just as a way of
understanding the sum of their constituent parts but as a phenomenon in
its own right.
Yale economist Robert Shiller has talked about the
importance of market narratives in fostering speculative bubbles. To the
extent these terms catch on, they become market constructions that do
not just refect the reality but also shape it. That appears likely in 2018 with
the FAANMG expected to add two-thirds to their price and the BHATTS to