AI,FAANG,and MANIA

In the past investment professionals and writers used short phrases like “Senior Sisters of Growth” to refer to a small group of growth stocks. Now they use acronyms like FAANG and MANIA.
I was interested to see which of these companies is liked by Artificial Intelligence at the present time, so used the AIEQ daily portfolio to get some answers as of today.
The largest portfolio holding is Alphabet (Google) with 3.42%,
the fifth largest is Amazon with 1.96%, while Facebook and Apple are both way down the list at 1.43% and 1.36% respectively. So that is Watson’s view today, but this may change quickly. The two things that I most like about the AIEQ portfolio are the lack of “conviction” stocks and the ability to see exactly what they hold today.
Conviction stocks can make or break conventional portfolio managers, especially when “safe” investments crash and burn – a regular occurrence these days. GE recently cratered, and major oils can also bring unexpected event risk – look at what happened to BP a few years ago.
Downloadable updated portfolios are also an attractive feature of many exchange traded funds, as they provide a useful insight into stock selection. For example, if you are checking income stocks there is a Schwab ETF – SCHD – that is worth researching to see what they hold.

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