Net Neutrality — What does The Money know?

Lots of angst in The United States these days, as Net Neutrality comes up to a critical vote which may see Obama era regulations rescinded. Curiously, in The United States the competitive landscape for internet access is already relatively backwards, when compared to other Western Democracies.

Specifically, its not uncommon for cities, counties or even entire US states to have either a single provider, or a very small set of providers to choose from. For comparison I’ll point out our personal experience in The UK. At home we’ve got cable from Virgin and ADSL from Sky. Cable runs a stoking 70 Mpbs while the ADSL runs, by comparison, a pedestrian 3 Mpbs.

But we also have Mobile WiFi devices — MiFis — one on The UK’s 3G network ( via Three ) and the other on the much speedier 4G network ( via Vodafone ). Clearly if there are problems with one of the ISPs we can just hop to another. Also if someone in the house is doing something contentious with the bandwidth ( which is tough on a 70 Mpbs connection, but hey it happens ) we can just hop to another. Problems with landlines in our area? ADSL down, move to cable. Problems also with cable? We hop to wireless. You get the picture.

Speaking with folks in The US it seems very often they have a choice of one provider and one provider alone. And often that single provider supplies both wired and wireless access. So clearly very, very backward.

So clearly folks living in The United States — already second class ‘Netizens when viewed globally — have lots of lose with the Net Neutrality vote.

For insight into most matters I tend to look at The Money. The chart below shows the well known “FANG” stocks — Facebook, Apple, Netflix and Google ( now called ‘Alphabet’ ). Over the past five days, we see as a whole they’ve performed very, very badly, when compared to the benchmark S&P 500.

On the other hand, when we look at the big ISPs in The United States, we see over the past five days they have tended to outperform the benchmark S&P 500.

Is this a class case of sector rotation? Money leaving The FANGs — a sector that has performed very, very well to date — and moving to value stocks? Or is The Money telling us more?

What does The Money know?

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