FANG+ Stocks: Buoyed in 2020 by Solid Earnings and Low RatesFor those who have followed my ideas over the past several months at-least, know that I remained bullish not only in the entire stock market on a broad basis, but US Tech was one of my top picks for continued growth which has deemed correct. I went on to say that 2020 will be a better year from peak to peak growth over the broader markets than 2019 which for now, is correct.
In-fact, even compared to "experts" across the lamestream media, I was one of the very few that actually believe 2020 would be a better year for the broader market than 2019 and not only has this deemed correct, but it will remain correct.
FNGU represents one of the best leveraged funds in the entire market and significantly better than the popular TQQQ, and even superior to the other popular 3x ETF TECL.
The companies the stock follows are diversified in a 10% weighted classification which is reset quarter by quarter. In 2020 I view all 10 of these boasting significant and continued growth.
- Tesla (My TP: 1000+)
- Nvidia (My TP: 350)
- Alibaba (My TP: 275-300; if Chinese GDP rebounds in Q2 then 400+)
- Bidu (My TP: 175-200; if Chinese GDP rebounds in Q2 then 250+)
- Twitter (My TP: 45)
- Facebook (My TP: 250-275)
- Apple (My TP: 375-400)
- Amazon (My TP: 2800-3200)
- Netflix (My TP: 425-450)
- Google (My TP: 1600+)
Of those listed above, Tesla, Nvidia, Apple and Amazon all have posted historic earnings; Netflix and Google posted decent earnings; Alibaba and Bidu continue to be remarkably undervalued given the current state of the virus, however, this will change by Q2 or Q3 of 2020; and Twitter and Facebook will likely rebound and show signs of strength as the year progresses.
In the long-run, Nvidia will be a dominant force in the AI market; BIDU and BABA will likely go on some sort of parabolic run to 3-4x their current stock value and Tesla will become a world dominant force in the EV and battery market. While normally 3:1 ETFs hold an inherent risk, given the diversification in this fund, one can capitalize on significant growth appreciation by investing into this ETF.
By the end of 2020 FNGU could and will likely triple in numerical value from current price (~100/share) buoyed ahead by decent earnings growth and likely the Fed lowering rates at-least twice in 2020.
An important technical note: once the SPX gets closer to 4000, investors should reduce their exposure to high risk ETFs as 4000 represents the peak of the longitudinal channel on EW theory. Investors should also reduce risk closer to late 2020 (October-ish) if the Democrats (particularly Bernie Sanders) have an elevated risk of winning the election based on polls.
- zSplit
