DeFANGed

https://trendmacro.com/system/files/reports/20180328TrendMacroLuskin-CJ.pdf
Donald L. Luskin
Wednesday, March 28, 2018
Political hysteria engulfs the FANG stocks, but there’s no fundamental threat here.
US Stocks
US Macro
Having outperformed throughout the present equity market correction, even making all-time highs, the FANG stocks have come in for a sudden drubbing, driven by a politically charged narrative about data abuse that we believe actually has little to do with such companies’ business models. These stocks have provided leadership for years, so this is a test of the strength of sentiment as this correction drags on. Over the horizon, a more substantive potential threat – other than antitrust, which we had already identified – is the loss of the safe harbor from liability for content provided by users, afforded by Section 230 of the Communications Decency Act, and now eroded by the new Stop Enabling Sex Traffickers Act.