I wouldn' say that 5 companies control everything. Rather, investors are still oblivious to the economic reality - we're heading for the sharpest & deepest recession on records in the UK (records go 3 centuries back); the rest of the world is probably not in much better shape. The idea is that the internet stocks are immune to the meltdown & equities are still better than cash, however:
- Google & Facebook generate the majority of revenue from ads - struggling companies looking for cost cuts and savings will start from marketing budget;
- Apple model is based on selling the same item in new packaging but many of the usual customers are either unemployed or about to be, or quite afraid to be so unlikely to upgrade an item that doesn't need upgrading
- Amazon should do well while physical stores are shut, but ultimately the same consumer squeeze is going to hit them
- Netflix will do well. That's 1 out of 5
Bear markets are long and this looks like just the beginning. V-shaped recovery is not coming for the rescue.
Having said all of that, I actually opened a few long positions over the last couple of weeks but with tight stops and only using a small %age of NW so the total risk is small.