Today, we’ll analyze four stocks driving the market — Facebook (FB), Apple (APPL), Amazon (AMZN), and Google (GOOG). These are what some call the new “four horsemen” of the market.
Per my chart, the 2017 year-to-date performance of the Nasdaq Composite is 25.17 percent. The four featured companies and their performance: Facebook 54.78 percent, Apple Computer 50.32 percent, Amazon 51.60 percent, and Google 32.93 percent.
How can four stocks drive the market? Very simply, these four stocks are held in a high percentage of many Mutual and Exchange Traded Funds (ETFs.) When buying come in, it drives indexes higher. Just the opposite happens when selling hits. The one-year performance of these “four horsemen,” are below. The list below shows the ETF and percentage of the funds held by these top four companies as of the first of November 2017.
• 44 percent of the Technology Select SPDR Fund XLK
• 42 percent of the Power Shares QQQ Trust QQQ
• 41 percent of the Vanguard Information Technology ETF VGT
• 23 percent of the iShares Russell 1000 Growth ETF IWF
• 20 percent of the Vanguard Growth ETF VUG
• 13 percent of the SPDR S&P 500 ETF Trust SPY
• 13 percent of the iShares Core S&P 500 IVV
Keep in mind, these are just four stocks with high percentages of holding. There are a few more that help with market direction.
Remember — Wall Street makes its money with us being in the market. We make our money with what we own and when.
Plan your work, work your plan, and share your harvest!