Stock investors got a dose of harsh reality earlier this month when the major US market indexes declined and took many of their favourite stocks with them, including the so-called “generals”: Facebook, Amazon.com, Apple, Netflix, Alphabet, Walt Disney, Intel and Tesla.

The three-day selloff was a stark reminder that stocks are not bulletproof. One catalyst in this case was US inflation spiking to a 13-year peak. Institutional investors do not take kindly to inflation and they sold.