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Scott McNealy was right about the dot-com bust - but he would be wrong today

After the dot-com bust, Sun Microsystems CEO, Scott McNealy published an article called "What Were You Thinking?" which has often been quoted in recent years. The important part is here:

The dot-com bust led to growth investing underperforming value investing for nearly 10 years. In 2022, it looked like the Scott McNealy quote was going to be proved right again, but 2023 has seen growth outperform value again.

The return of growth investing has been surprising as there was a general assumption that markets, and particularly tech markets, were been driven by liquidity. This year the correlation between central bank balance sheets and the Nasdaq has broken down.

So liquidity is not important to markets? Well yes it is, its just not that important to large multinationals. So Scott McNealy would be both right and wrong at the same time today.

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Capital Flows and Asset Markets
Russell Clark