Nifty Fifty and the FAANG Stocks

After the parabolic rise of the “Nifty Fifty” stocks in the 1960s and early 1970s, this group of 50 large-cap, blue chips equities “proceeded to dive and lose more than half their value in the ensuing bear markets of the mid-1970s.” This, according to a recent article in CNBC, should serve as a “historical warning to generations of investors of the heavy price to pay for unbridled, uncritical enthusiasm.” At their peak, the article says, the Nifty Fifty (which included names such as Coca-Cola, Xerox and General Electric) were trading at 42 times earnings. “Some of these stocks, “it says, […]