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erienewsnow.com 10 Jan, 2022 19:00 am

Farewell, FAANGs: Big tech stocks sink and Dow falls 400 points - Erie News Now

Farewell, FAANGs: Big tech stocks sink and Dow falls 400 points - Erie News Now
By Paul R. La Monica, CNN Business

Growth stocks in particular have been pummeled so far this year due to fears about inflation slowing the economy.The SPDR Portfolio S&P 500 Growth ETF is down more than 6% already in 2022 while the iShares Russell 2000 Growth ETF, which owns shares of smaller growth stocks, has plunged 7."If the first week of the year is any indication of what to expect over the coming months, investors will have to be nimble in 2022, and be aware of any outsize exposure they may have to growth stocks," said Solita Marcelli, chief investment officer of the Americas at UBS Global Wealth Management, in a report Monday.La Monica, CNN Business For some time, many investing experts have been predicting there will be a shift away from big tech towards value stocks.

UBS' Marcelli noted that "valuations for growth companies should compress more rapidly relative to value stocks" as the Fed raises rates."And that is exactly what has happened in the first week of the year," she said, adding that "more speculative, very rapidly growing, non-profitable tech companies have fallen even more" than the top techs of the Nasdaq.

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