Excellent column by John Authers in the turn in equity markets:
The dramatic plunge in stock prices is rooted in over-valuation. Investors are heading to less-exciting parts of the market.
But this selloff is primarily driven by valuation, and it’s remarkable how similar it looks to the bursting of the dot.coms’ bubble at the turn of the century.
Beyond value per se, the market is setting fresh store in the ability actually to make a profit.
Amazingly, after Monday’s selloff, all of ARK’s advantage for the last five years has evaporated. At any point over that five-year period, you would have been better off buying the equal-weighted index rather than the stocks in ARK
Staples’ relative performance compared to consumer discretionary stocks, a classic measure of recession fears, is now its strongest since the worst of the selloff after the Lehman Brothers bankruptcy in 2008
https://www.bloomberg.com/opinion/articles/2022-05-10/stocks…
Even Cathy Woods is buying GM.
https://www.bloomberg.com/news/articles/2022-05-10/cathie-wo…