Irrational Market Exuberance Is Dying a Painful Death: Devitt
- It’s challenging for markets to make sense of juxtapositions
- Pandemic faves like Netflix and Peloton had been overbought
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Former Federal Reserve Chairman Alan Greenspan famously used the phrase “irrational exuberance” to describe the euphoric investor sentiment that sent tech stocks soaring in the late 1990s. Everyone knows what happened next.
Now, history seems to be repeating itself, as some of the disruptive and innovative companies that were market darlings during the time of pandemic lockdowns are being clobbered by a “dose of realism,” said Aoifinn Devitt, chief investment officer at Moneta, which oversees more than $32 billion in assets.