The tech bloodbath won’t last forever

To paraphrase the American senator famously talking about government spending, a trillion dollars here or there and very soon you are talking about serious money. Over the last week, a massive $1 trillion has been wiped off the value of the major American technology companies, and, if measured since the start of the year, the carnage is far worse. But is it all as bad as it seems? Sure, some of the excesses of lockdown are being trimmed, and rising interest rates are starting to hurt some wildly over-valued companies. But nevertheless, tech is still where the growth is. And in reality the bloodbath will soon be over.

It has been a terrible week for investors in tech. Since last Wednesday, Apple has lost $220 billion in value. Tesla has lost $199 billion, Microsoft $180 billion and Amazon $170 billion.