LONDON, UK / ACCESSWIRE / October 24, 2018 / For almost 20 years, the technology sector has been dominated by a group known as FAANG: Facebook, Apple, Amazon, Netflix, and Google (through its parent company Alphabet). These corporate giants continue to be called technology companies mostly for the sake of convenience, but they have been evolving into business organizations with multiple interests. With a combined market capitalization exceeding the entire FTSE 100 index, as well as Germany's DAX and France's CAC40 put together, the FAANGs have been fueling the US stock market for several years and understandably command the interest of investors. While some favor speculative trading for quick profits, others look for ways to invest in these companies for the long term, betting that their strong fundamentals and commitment to innovation will keep driving them forward for decades to come. However, the volatile nature of the technology sector means that investors with a buy-and-hold mentality should consider their strategies carefully and evaluate each FAANG stock in depth to determine which best serve their goals, says UK-based brokerage service Steigen Makler.

It is not surprising that the first piece of advice investors get is "Do your homework." This is especially critical for those with a long-term horizon because the stock market is a place that tends to overreact, both to good and bad news. As enticing as the FAANGs may seem, they are not without their challenges, be those related to competition, regulations, or macroeconomic factors. Moreover, each of these companies is susceptible to different influences, and the fact that they are lumped together should not distract prospective investors, SteigenMakler points out. When it comes to buying and holding a stock, the first rule is gathering all the facts so as to make reasonable projections. The market will go up and down, valuations will fluctuate, and companies will temporarily fall out of favor with Wall Street, but those with solid fundamentals will always rise back. When it comes to FAANGs, it is up to investors to decide which one (or ones) carry a level of risk they can tolerate.

Another principal requirement for long-term investors is diversification. Balanced portfolios make it possible to minimize risk, which investors interested in FAANGs may achieve through buying into an exchange-traded fund (ETF). Many of the world's biggest money managers operate ETFs with exposure to FAANGs, including BlackRock, Invesco, Charles Schwab, and Morgan Stanley. Importantly, "long FAANG" was the preferred strategy for fund managers in the first half of 2018, Barron's reported in July, citing a Bank of America Merrill Lynch survey. Adding to the attraction of ETFs are their relatively low charges and greater tax efficiency.

Steigen Makler is a UK-based financial brokerage which serves customers from commercial offices in 14 countries. With an innovative trading platform and a product portfolio comprising shares, commodities, indices, and cryptocurrencies, the company aims to deliver the highest-quality trading experience and maximum returns for its clients. Steigen Makler is regulated by the UK Financial Conduct Authority and the Cyprus Securities and Exchange Commission.

STEIGEN MAKLER LIMITED: https://steigenmakler.com

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Contact Information:

Steigen Makler
33 St. James's Square,
SW1Y4JS, London, England, UK
info@steigenmakler.com

SOURCE: Steigen Makler