Here’s the current conundrum for tech stocks. From late April to mid-May, the Nasdaq Composite slumped 7%, as investors fretted over the possibility that returns would be crimped by higher inflation, and increasing interest rates. Below the surface, the damage has been more extensive.
Last year’s feverish rally—in which the most-expensive stocks generated the biggest returns, as investors adopted a growth-at-any-price philosophy—has dissipated. Many of last year’s biggest winners have retreated 25% to 50% from recent highs….
