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Laxman Pai, Opalesque Asia:

The tech behemoths is in a sea of red right now as FAANG stocks (Facebook, Amazon, Apple, Netflix and Google, now called Alphabet) have experienced violent losses during the recent market selloff.

For more than a year, those five major stocks have turned in outstanding performances and become a barometer for the larger market.

For investors who didn't find that exciting enough, BMO Capital Markets Corp. helpfully issued the MicroSector FANG+ 3X Leveraged ETN. Momentum is turning away from growth to value opening the door to one of today's great value opportunities - U.S. pipeline stocks.

When the markets opened last week, FAANG stocks had lost about $1.02 trillion in market value since their recent highs. Each has had their individual problems, and overall uncertainty is causing investors to back away.

According to Peter Garnry, Head of Equity Strategy at Saxo Bank, three forces are playing technology stocks down: 1) momentum funds shifting out of previous winners, 2) retail investors getting nervous about their FAANG stocks with large gains from previous years, 3) large asset managers are in general changing positions to account for a weaker entry to 2019.

The last potential driver is that hedge fund concentration has been massive in technology stocks and remember these funds live to see another high watermark to get their 20% cut of profits.

However, Peter doesn't believe that FAANG stocks will be plunged into a d......................

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