Crash Landing on Stock Heroes of Yesteryear Is Worst in a Decade
- Tesla, Ark ETF and solar stocks have plunged into bear markets
- Valuation now becomes a factor determining winners, losers
Photographer: Teeramet Thanomkiat/EyeEm//Getty Images
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It’s the curse of a strengthening economy. With bond yields rising, chasing recent winners in the stock market has morphed from a slam-dunk strategy to a historically painful one.
High-flyers from Tesla Inc. to Zillow Group Inc. and Chewy Inc. tumbled this week as the spike in rates put pressure on richly valued companies. Along with cannabis plays and solar stocks, these poster children for market froth are enduring losses that exceed 20% from recent highs, meeting one definition of a bear market.