Your ETFs Are At Risk If US Delist Chinese Stocks

At the beginning of January, the drama of delisting certain Chinese stocks controlled the headlines for a few days. Then, as we all know, other more newsworthy stories occurred, and we all forgot about the delisting of Chinese stocks due to 'national security' concerns.

Several different stocks were being thrown around as possibly being delisted in the future, which could affect you even if you don't own any individual Chinese stocks or Chinese-focused ETFs.

The delisting occurred as a way to 'protect' the national security of the United States against China. So, the main focus of the delisted stocks were those of military importance to the Chinese government. Most of the stocks on this list the average investors would have never heard of before. But, there were three telecommunications companies thrown on the list that some investors may have heard of. However, still very unlikely you would be holding them individually or through a non-Chinese-focused ETF.

However, two Chinese stocks, in particular, are a part of a vast number of popular ETFs in the US. The companies are JD.com (JD) and Alibaba Group Holding (BABA). For whatever reason, these two stocks were and still to an extent being considered as possible additions to the delisting list. Continue reading "Your ETFs Are At Risk If US Delist Chinese Stocks"

Now May Be The Time To Buy A FANG ETF

The phrase the FANG stocks, which was coined by CNBC’s Jim Cramer, represents five high flying technology stocks, Facebook (FB), Amazon.com (AMZN),Netflix (NFLX), and Google’s parent company Alphabet (GOOG - GOOGL). Cramer coined the phrase because how incredible these stocks where performing when compared to other technology stocks, or the market as a whole. These stocks have been market leaders for a few years, during which time we have seen their valuations go through the roof. But, the old saying on Wall Street, “stick with what’s working” has simply continued to work with the FAANG stocks. Until recently.

Facebook, Amazon.com, Netflix, and Google’s parent company Alphabet have all now reported quarterly earnings for the second quarter and while Amazon, Google, and Netflix didn’t get destroyed like Facebook, the group combined with Apple (AAPL), had lost $185 billion in market value during the last few days of trading in July. This decline had some investors wondering if the FANG rally is over, while others are considering this a good buying opportunity.

I personally am in the latter camp considering Gross Domestic Product figures came in at 4.1%, the recent job reports have all been strong, and despite some issues, mainly caused by those in Washington, all economic data indicates that the US consumer and economy is strong.

Furthermore, a strong case can be made that Facebook hurt itself regarding growth due to changes it is implementing following the data scandal back in the spring. The stock fell 19% in one day after reporting earnings. For the most part, the rest of the FANG stocks reported good quarterly earnings from most points of view, despite perhaps not topping lofty expectations set by Wall Street analysts. Continue reading "Now May Be The Time To Buy A FANG ETF"