What Impact Does Amazon Have on Your Fund?

Another beneficiary over the same time frame has been Bronze-rated

The impact is not limited to those who decide to hold Amazon. For example, Amazon’s announced acquisition of

On the other hand, some names have found themselves on the flip side of this onslaught. Traditional grocer

While the Amazon effect certainly warrants attention, it is not the sole determining factor in the aforementioned portfolios’ success. Furthermore, there is significant added risk as a result of concentration. Amazon’s run has been impressive, but there is no guarantee that the rise will continue, and value-conscious investors are wary of its skyrocketing valuation. Investors would be prudent to monitor Amazon and its wide reach—in particular, the devastation it has had on traditional brick-and-mortar retailers and any potential new endeavors. Despite no assured success in the grocery space, Amazon has already caused disruption and wreaked havoc on investors with outsize exposure to the affected names. The long-term impact of such moves is still uncertain but investors should stay attuned to the behemoth’s development.