It’s fitting that the current explosion of acronyms in financial markets is linked to the outperformance of the tech sector, given the plethora of initialism associated with computer programming and usage.
ICYMI, a small number of IT companies have played a big role in pushing U.S. stocks to ATHs. And Wall Street is responding with a bull market in acronyms.
This craze started with FANG — Facebook, Amazon, Netflix, and Google — the core four tech titans popularized by CNBC’s Jim Cramer in early 2013. He’s since moved on to the FAAA group — rebranding Google in accordance with its parent company, Alphabet, and substituting Alibaba for Netflix.
Recently, Goldman Sachs global chief investment officer Robert Boroujerdi warned of the extremely subdued volatility that accompanied the rally in the FAAMG quintet — adding Microsoft and Apple into the mix while removing Netflix — in a note that proved to be the prelude to the recent tumult in tech stocks.
After the pullback, JPMorgan Chase head of U.S. equity strategy Dubravko Lakos-Bujas provided a list of “FAAMA-like” stocks investors might want to consider.
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(Those five are the same but with Google rebranded as Alphabet — so FAAMG is aka FAAMA, for those trying to keep up.)
It’s fitting that the current explosion of acronyms in financial markets is linked to the outperformance of the tech sector, given the plethora of initialism associated with computer programming and usage. AHDL or DHTML, anyone?
AFAIK, acronyms predate the English language itself, and they’re not new to the realm of finance.
But it’s the WWW that facilitated their parabolic growth to use in everyday speech and, apparently, sell-side research. Blame the character-constrained online environments.
Tobias Levkovich, chief U.S. equity strategist at Citigroup, pulled out a couple acronyms of his own to make the case for what he…