Good morning everyone.

Back in January I started noticing all the ’roundtrips’ tech stocks were having as they gave up their COVID gains. I called the moment ‘The Great Roundtrip‘.

This ‘great roundtrip’ has become something more now that hundreds of tech stocks are trading below year 2020 prices. Marc Rubenstein calls it Dotcom 2.0 and I agree.

Everyone is looking to blame someone or pin the decline to an event or a moment.

I think that is a waste of time because if you look at the charts, most tech stocks peaked last February and March but the music kept playing with IPO’s, SPAC’s and the summer of Solana etc..

We were doomed because of the long long run and the endless supply of companies that were funded during the long boom.

Endless supply created the Dotcom 2.0 moment.

I have no idea how long the current decline in the Nasdaq lasts or if it spreads to the rest of the S&P, but this supply imbalance will eventually resolve itself and growth will one day be rewarded again with higher multiples.

I spent 30 minutes with my friend Jeff Richards talking about these things. You can watch it here.

Have a great weekend.