As companies grow to become some of the largest firms trading on the US stock market, the returns that push them there can be impressive. But not long after joining the Top 10 largest by market cap, these stocks, on average, lagged the market.
Logic and history argue for a commitment to value stocks, so investors can be positioned to take part when those shares outperform in the future.
It is not particularly unusual for the market to be concentrated in a handful of stocks. The extraordinary performance of FAANG stocks over the past decade are leading some to wonder if we should expect these stocks to continue such their strong performance going forward.