FxPro Financial Services Ltd | Jul 13, 2020 06:44AM ET
Stock markets remain in the phase of the economic cycle, where the main driver is interest in "growth stories". The total capitalization of FANGMAN stocks (Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), Google (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA)) exceeds $7.1 trillion. The capitalization of Tesla (NASDAQ:TSLA) exceeds $285 billion, and the fortune of its founder, Elon Musk - $70.5 billion, making him the 7th richest man on the planet. These are all companies that are of interest to investors in times of rapid economic growth, and their particularly sharp growth often occurs at the end of this macrocycle phase.
This means that if the U.S. currency weakens, U.S. policymakers won't worry about it for a long time, opening the door for potential depreciation not only against the franc and yen but also against the euro and several other currencies. As for the stock market, the current division is likely to remain in place. Some companies make an adequate assessment of markets based on prospects and multipliers, whereas the capitalization of others is getting higher and higher because of the extremely favorable attitude towards them from investors.
The FxPro Analyst Team
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