It seems to me that the extensive correction suffered by last year’s stock market winners is coming to an end. Many former darlings have lost a third to a half of their peak values, which I think is enough to puncture the previous wild-eyed enthusiasm.

What happens from here?

Investors sort through the tech rubble, where, it seems to me, the baby has been thrown out with the bathwater. But a more measured approach than in 2020 will likely be taken. That is, a sharper look at business growth prospects, current earnings, possible competition… I don’t think it’s essential to have an exit plan for everything, as it normally is with any growth stock. That’s because I think the current economic and political situation is still too fluid for intelligent end-game planning to happen. But I woke up this morning thinking about this topic seriously for the first time in a while.

more on inflation tomorrow