(Bloomberg) — 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. Fast forward to 2022, and history is repeating itself when it comes to some of the disruptive, innovative companies that were market darlings during Covid-19 lockdowns.
Those companies are now being clobbered by a “dose of realism,” said Aoifinn Devitt, chief investment officer at Moneta. Devitt joined this week’s “What Goes Up” podcast to discuss this and other hot topics in markets, such as inflation, rates and the outlook for consumer spending. It’s not all bad news for the disrupters of the corporate world, however: They’re still favorites of venture capital markets.
“I don’t think that our fascination and our obsession with innovation is likely to go away anytime soon,” Devitt said.
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