‘BAANG’ is the new ‘FAANG.’
So says technical analyst John Roque at Wolfe Research, who believes a group of gold miners he coined as BAANG— Barrick Gold, AngloGold, Agnico Eagle Mines, Franco-Nevada, Gold Fields — are better plays than mega-cap FAANG names as they might have reached their peaks and started losing steam.
“We made this index BAANG in homage to the fading FAANG,” Roque said on CNBC’s “Squawk Box ” on Monday. These gold miners are “much like gold. So gold has broken out but it’s still down way from its highs in the 1900 thereabouts and we think both gold and those stocks have more room.”
Gold is trading above $1,400 for the first time since 2013 and it is up more than 12% year-to-date. The metal’s strength is backed by safe-haven buying amid geopolitical uncertainties as well as the Federal Reserve’s openness to rate cuts this year. The BAANG stocks are up a whopping 42% since May 10, the analyst said.
Meanwhile, Facebook, Netflix and Google’s parent Alphabet are still in the red for the trailing 12 months. Investors are worried it would be hard for those tech giants to turn around as the government’s antitrust investigations heat up.
Netflix tanked more than 10% on Thursday on a surprising drop in the subscriptions number. Amazon and Facebook are set to report their second-quarter numbers this week. Apple reports later this month.