The year has started with a sharp sell-off in global markets. The rout comes amid concerns over a more hawkish Federal Reserve while real bond yields are surging and inflation is making a comeback globally.

Long-duration assets, in particular pre-profit tech, cryptos, special purpose acquisition companies (Spacs), and even secular growth stocks are taking the worst beating. As is typical of periods marked by rising inflation, cyclical stocks and value sectors like energy have outperformed.