, Columnist
Turn Off the Memes, This Party’s Over Like in 2000
The dramatic plunge in stock prices is rooted in over-valuation. Investors are heading to less-exciting parts of the market.
Cathie Wood’s flagship ARK Innovative ETF now lags the average S&P stock over five years.
Photographer: Kyle Grillot/BloombergThis article is for subscribers only.
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Look back almost a quarter of a century, and you might recall that the stock market plummeted in 2000 when it became obvious that shares had become too expensive. That epic market break revolved around valuations — the most overvalued stocks fell the most, and plenty of solid and previously unappreciated companies managed to keep delivering returns. It wasn’t particularly about any serious changes in the real, non-financial world.