Why Have Growth Stocks Plummeted? An Interview with Tobias Carlisle

The 7investing Podcast · Jan 18, 2022 · 1h 4m

In 2021, many growth investors suffered severe losses even while the S&P 500 index advanced 27%. A recent Bloomberg article pointed out that almost 40% of the stocks in the Nasdaq Composite Index were down 50% or more from their all-time highs. It continued, "At no other point since the bursting of the dot-com bubble have so many companies fallen like this while the index itself was so close to a peak."

Are tech stocks down big because the Federal Reserve expects to raise interest rates several times this year? Did their valuations get too stretched in their post-COVID runup?

Tobias Carlisle…