One of the biggest stories in financial markets over the past year and a half has been the bear market in Internet stocks. It started in early 2021, and we have seen losses of more than 80% in some of the most popular and best-performing stocks during the pandemic. Examples include Snap (SNAP), Carvana (CVNA), and Etsy (ETSY).
These companies reached egregious valuations which were unsustainable. Now, there are some signs of stabilization over the last couple of weeks, with bonds catching a bid and some forward-looking inflation measures starting to bend. Therefore, I believe investors should once again turn their attention to growth stocks, as this group has historically outperformed after bear markets.
