"Is FANG falling back a red or green light for market investors?" by: John Sample

   So much for the historical trend that the month of July performs worse than the rest of the months. This July is the best performing month since January. 
   Just goes to show you that it important to pay attention to your history but things can and will be different. 
   Just this morning I woke to the sound of thunder and rain with significantly lower temperatures. 
   Just yesterday we were roasting at well over 100 degrees. Such a wonderful day to be outside doing landscaping work. Nearly killed me.
   Speaking of near death experience, how about Mark Zuckerberg and Facebook last week. 
   The second quarter earnings report highlighted the fact that Facebook would be spending significantly higher amounts on security in the future. 
   The impact on future earnings was not lost on investors and Mr. Zuckerberg lost billions in one day. The concern spread to other social media companies as the also sold off. 
   Much like birds of a feather flock together and one gets a disease and they will all suffer. I find that hard to believe when it comes to Google and Amazon but a pullback might finally get the stocks back where one could buy. 
   It does give one pause to think if this market could move forward should the FANG stocks stall. 
   It actually could allow value stocks to move forward as an alternative. 
   One should note though that value stocks have underperformed technology stocks. 
   Value stocks include the likes of retail, financials and energy.
   The logic is that interest rates are going to rise assisting financials. The Federal Reserve cannot ignore a 4 percent GDP giving them reason to at least raise rates two more times this year. 
   The price of West Texas crude has climbed back over $70 to aid the energy sector along with the fact that LNG exports are becoming a reality. 
   As for retail, people spend more when they feel good about their finances. You might take a look at Citibank, Noble and TJX.
   This is all nice to say but one still has to keep your eye on the potential storm. Sooner than later we are going to have to deal with a rising debt load. 
   Trade wars make people think more negatively than positively. We have elections coming in the fall. 
   As I have said in the past, the stock market needs a wall of worry and we certainly have that. The pullback in the FANG market leaders makes it more a stock pickers’ type of market.
   All I can point to is the old expression that it is the economy stupid and this economy is still strong and will be so into next year. 
   So, while you are melting in the heat this summer take a little faith in the market growing your savings this year.   

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