FANG stocks took a beating this week in what Jim Cramer described as the biggest rotation of stocks he has ever seen.
FANG stands for Facebook, Amazon, Netflix and Google, now Alphabet. When Cramer initially coined the term FANG, it was to highlight four stocks that were in charge of their own destinies. They were able to do well, regardless of how the economy fared.
"FANG and the other high-growth stocks get sold to raise money to purchase the likes of CAT and Wells Fargo, because they will have the highest estimate revisions, and that is what causes stocks to roar," the "Mad Money" host said.
Cramer likes FANG stocks because they have the ability to provide upside surprises, and it is always the magnitude of the adjustment higher that drives big moves in a stock.
However, there can also be moments like what happened this week, where investors' core beliefs and sentiments change about the market. Donald Trump's election transformed the entire perception of what companies could deliver the best earnings beats.