The technology sector was the market darling during the pandemic, but it has inflicted a lot of pain on investors in 2022.

Even the generals have been shot in this skirmish: Amazon (−32.4%), Microsoft (−18.4%) and Apple (−17.8%) are all dealing with the challenge of low earning yields (due to high multiples) at a time when the risk-free yield is rising. Even the best companies in the world need to offer an equity risk premium, so yields must go up and that means prices come down, especially when earnings are under pressure...

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