The lines crossed in 2022 and never looked back. What seemed like a temporary dislocation has proven to be a permanent regime change—a structural shift that continues reshaping investment strategy and market dynamics.
Source: Financial Times
2022 marked the end of an era: zero interest rates, infinite liquidity, growth-at-any-cost. What replaced it wasn’t a return to historical norms—it was something new, a regime where old playbooks no longer apply.
The specific crossover varies by metric, but the pattern is consistent: relationships that held for a decade inverted and stayed inverted. Yield curves, valuation multiples, growth vs. valueperformance—each crossed and established new baselines.
This represents a paradigm shift rather than cyclical fluctuation. The question isn’t when things return to “normal”—the crossing established a new normal.
Strategic Implications
Investors still using pre-2022 frameworks are fighting the last war. The structural shift demands updated mental models: different return expectations, different risk assessments, different portfolio construction.
The crossing was the signal. Three years later, the new regime is confirmed. Adapt or underperform.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
