This in itself is not new, as this column had been pointing out. The “rotation to reality”, which started in the second quarter last year, had already left the Covid-19 rally in tech stocks reeling. At the more fantastical ends of meme stocks, Cathay Wood’s Ark Innovation ETF, components of the Goldman Sachs non-profitable tech stock index and the leading names of China tech labouring from Xi Jinping’s “common prosperity” moderations — they have all corrected 50%–70%. Over-inflated de-spacs in the US, encapsulated by one too close to home Grab Holdings, traded as low as US$5 ($6.73) — more than half below its US$11 debut — are struggling to find their footing.
As we entered into the year of the Tiger, a curious phenomenon appeared to be brewing in the market — and I am not referring to the hops in Tiger Beer we drink when visiting relatives (up to five visitors a day per household). Neither am I referring to the tea we drink to “wash away” the copious amounts of festive snacking.
Rather, it is the US market: The awe-inspiring, all-powering hoover that has been sucking in capital from across the world for several years. This mighty bull has started to falter.
