Putting money into an equity gives the buyer hope for an outsized return, and this where the demand supply equilibrium of the stock dictates what price it should trade at.
We have seen crazy valuations in tech for 2021 only for them to lose 50-70% from their peak prices, but the FAANGs with their dominant market position ans their ability to generate strong free cashflows have propped up the tech indices.
2022 could be the year for value investing which was largel...