How little do we know about the new Omicron variant of the Corona virus? The less we know, the more we fear. Hence markets have found a valid pretext for a brutal sell-off. Were valuations overstretched? For most stocks that cannot be denied. If the stock market decline coincides with a slowing economy, stock price targets may need to be revised down significantly. If this perspective unfolds, stocks will look even more pricey after a 10% decline from current levels.
