- As last year drew to a close, we were writing quite a bit about the narrowness of the year-end stock market rally – noting, for example, that some 40 percent of companies on the broad-based Nasdaq exchange were down by 50 percent or more from their 52-week highs.
- The Russell 2000 Growth is a small-cap index full of technology-oriented companies, many of which are at a relatively early stage of their corporate life, with unproven value propositions and an uncertain stream of cash flows some ways out in the future.
- The rate impact was amplified, of course, by the already-stretched valuations of many of these companies, the stock prices of which had gone up at a dizzying pace since the beginning of the post-lockdown rally in 2020.
For further details see:
The Bear Of Low Quality