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Ghost of Igloi
RE: Down goes the Dow
Sure. The way you want to think about it is during a Bull Market people are extrapolating higher growth well into the future driving multiples to extremes. At some point the weight of expectations is a mismatch with reality. We saw that recently with AMZN falling in a relatively short period of time from 2,050 to 1,490. At the moment the market is re-rating a proper multiple, so at the lower price the stock is still expensive, but obviously quite a bit less expensive than a few weeks ago. Of course this same dynamic functions in reverse in a Bear Market.

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