If you analyze specific sectors or stocks, it really isn’t as irrational as it seems. Hotel, airline and restaurant stocks are more than 50% down YTD while tech/saas stocks are flat to positive. That said, there are some stocks that seem mispriced like Chipotle, which is still up YTD.

And investors probably are too optimistic about some tech companies since the recession will surely impact enterprise spending.

But it’s not as irrational as you may think once you look at the individual companies doing good and bad now.