Tech Antitrust Crackdown is Exactly what AIM Investors Like to See

The US Congress has announced that they will open hearings and investigations into major web companies such as Facebook and Alphabet/Google. The US House Judiciary Committee said on Monday June 4 2019 that it plans a bipartisan probe into “competition in digital markets.”

The scope of the probe would include identifying monopolies in digital markets, looking into whether major online Big Tech companies are acting in ways that stifle competition, and seeing if antitrust laws, competition policies, and current enforcement are adequate.

The investigation would include hearings by the House Subcommittee on Antitrust, Commercial and Administrative Law on the “rise of market power online,” said the committee, adding it would conduct a “top-to-bottom review of the market power held by giant tech platforms.”  These investigations in my opinion will do no long term harm to FAANGS but will make them attractive buys now.

FAANGS are an acronym for major tech stocks like Facebook Apple, Alibaba, Netflix, and Google.

“The open internet has delivered enormous benefits to Americans, including a surge of economic opportunity, massive investment, and new pathways for education online,” said Chairman Jerrold Nadler (D-NY). “But there is growing evidence that a handful of gatekeepers have come to capture control over key arteries of online commerce, content, and communications …. Given the growing tide of concentration and consolidation across our economy, it is vital that we investigate the current state of competition in digital markets and the health of the antitrust laws.”

What does this mean for you and I as AIM investors?

First, it is a great chance to take advantage of the dip in FAANG stocks like Facebook, Apple, Alphabet, PayPal, Alibaba, etc. as negative news and attention causes other investors to sell based on fear and doubt.

The windows of opportunity to buy quality FAANG LEAPS are few and far between.  Take a look at how prices have dipped recently – even one of the best stocks out there – Microsoft is so cheap it triggered some buys for some of my client friends!  Those buys will really pay off in the future.

Let the herd focus on short term results – we AIMers will continue focus on where we’ll be in 5 years or 10 years – in retirement!

Those of you who have been learning from me for a while – or who know about Long Term Anticipation Equity Securities (LEAPS) – know that LEAPS are much more volatile and dynamic than the stock prices of the company they are associated with. That is why using AIM with LEAPS is an even more profitable strategy than Robert Lichello could have imagined when he created the Automatic Investing Method over 30 years ago.

Investigations and hearings into tech company antitrust violations mean stress and discomfort for a lot of people. For investors who have a scientific method to buy low and sell high it is a great time to be following this news.

If you need to learn more about AIM, LEAPS, and why FAANGS are the perfect addition to this strategy, my next book (scheduled for release in the summer of 2019) will answer this in detail. Look at my free offers in the meantime such as my monthly newsletter which I offer for free in your first year.  You can also ask for my help directly so you don’t miss this unique period of turbulence in the market with FAANGS.

 

Disclaimer: Jeffrey Weber is not an investment adviser and gives 
only his personal view and opinion, never making any investment 
advice or recommendation to buy or sell specific securities. 
Investors in financial assets must do so at their own responsibility 
and with due caution as they involve a significant degree of risk. 
Before investing in financial assets, investors should do their own 
research and consult a professional investment adviser.