Part 3/8:
As the discussion unfolds, they focus on how the stock market has been reacting to rising interest rates, specifically mentioning that the NASDAQ has been hit the hardest among major indices. Elizabeth emphasizes the rationality behind this behavior, explaining that it’s unreasonable for both yields and growth stocks to rise simultaneously, thus indicating a necessary market correction. She recalls the exuberance observed in earlier phases of investment and suggests that the corrections seen now could be a good thing in preventing potential market overheating.