Until early 2018, the Gafam stocks – Google, Apple, Facebook, Amazon and Microsoft – were every investor’s darlings: lauded for their outstanding stock market performance and credited with driving much of the recent rally in US equity indexes.
Since early February, the mood has soured. The Gafams are now accused of fuelling recent episodes of spiking volatility and plunging markets. But does the data support the consensus? Are US equity markets highly exposed to a ‘Gafam factor’? The answer is