Street Length Dress Definition
If your kids are starting to bore their teeth into the banal market, they’ve apparently heard affluence about the Dow and the S&P 500.
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But the FANG?
It’s amid the latest in a continued band of arbitrary predictors, blue barometers and added theories that accord to the babble surrounding why stocks go up and down. Some indicators are angry to the calendar, while others clue presidential elections, the Super Bowl and horse racing’s Triple Crown.
The FANG is an acronym for four high-flying stocks that are broker favorites: Facebook, Amazon, Netflix and Google. Never apperception that Google is now alleged Alphabet.
The appellation was coined several years ago by Jim Cramer, the stock-picking personality and host of CNBC’s "Mad Money," as a way to clue the astounding advance of these four technology trailblazers.
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While these four stocks accept been arch performers over time and helped ability the bazaar averages higher, they’ve taken their chastening during January’s downdraft.
What’s the FANG adage now, at atomic according to Cramer? "When the high-flying FANG stocks are bottomward as abundant as the boilerplate stock, it will be a assurance that a lot of the accident has been taken out of the bazaar overall," he said in a mid-January television commentary. Translated, that’s back we’ll apperceive the bazaar sell-off is over.
The FANG basis brought to apperception several longstanding Wall Street theories, including one angry added to the breadth of women’s dresses than abysmal abstracts dives. The alleged "hemline theory," which allegedly got its alpha in the 1920s, holds that banal prices move in the aforementioned administration as the hemlines of women’s dresses.
For example, ascent hemlines, such as what was the appearance in the 1920s and 1960s, was a bullish sign, while continued skirts, from the Depression years of the 1930s, meant buck markets. Fashion watchers say miniskirts are hot new items for spring, so the bazaar should calefaction up, right?
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Young banal pickers may accept best up on the "January barometer," which tells you that as January goes, so goes the market. Don’t abash that barometer with the "January effect," which comes into comedy alone back stocks animation college in January afterward a bottomward ages in December.
There’s additionally the "presidential acclamation indicator," which states that banal markets are weakest in the year afterward a presidential election.
If those indicators don’t abduction your teen’s interest, there’s consistently the BAGEL barometer. It advance addition set of arch stocks: Alibaba (whose ticker is BABA), Amazon, Google, Expedia and LinkedIn. The acronym’s imperfect, but so what?
My admired is the Super Bowl Predictor, which has accurately predicted the administration of the banal bazaar 82 percent of the time over the game’s 49 years. Of course, it’s alone the brawl 18 percent of the time.
["582"]By its simplest definition, a win by the National Football Conference aggregation in this year’s Super Bowl should arresting that the bazaar will be up for the year. But it will be bearish if the American Football Conference aggregation wins. (There are zigs and zags to this analysis, and if you appetite to go deep, there’s affluence of analysis online.)
What’s a adolescent broker to accomplish of all this Wall Street mumbo jumbo? That you can accept fun acquirements about the means of Wall Street. And, hey, if February’s big football bold bound turns into a dud, you can consistently allocution about the Super Bowl Predictor.
Questions, comments, cavalcade ideas? Send an e-mail to srosen@kcstar.com or address to him at The Kansas City Star, 1729 Grand Blvd., Kansas City, MO 64108.
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