Rolling coverage of the latest economic and financial news
- Introduction: A volatile week in the markets
- Wall Street on track for worst week since January, 6th fall in a row
- Turmoil and panic in crypto market as ‘stablecoin’ slump prompts wider collapse
- HRT products could be shipped to UK from Europe next week
The US stock market has borne the brunt of this week’s turbulence, due to the tumble in technology giants.
The Nasdaq Composite has shed 6% so far this week, while the UK’s FTSE is currently down less than 1% for the week, and Germany’s DAX is actually over 1% higher.
This is where valuations became most stretched, and where the market is having most trouble finding its nadir. As investors grope for more appropriate financial yardsticks with which to judge these companies, as well as the right valuation multiples to apply to those metrics, volatility is likely to remain high.
Multiples of revenues were a favourite that growth investors used to chase stocks higher, at least until the turn that set in last November. On this measure, there is ample room for further declines, particularly since markets often overshoot on the way down as well as on the way up.
