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With declines in tech and retail stock prices, rising inflation and interest rates, and persistent supply chain issues, 2022, is turning out to be gloomier than anyone expected. Companies should respond to economic developments. There is an impulse to cut costs by postponing new projects, reducing discretionary expenditures, freezing new hiring, and reducing headcounts. Because digital stocks have suffered the most dramatic declines in stock prices recently, one may wrongly conclude that this is the end of the digital revolution, and some firms could cut back on their digital transformation efforts accordingly. The authors don't think these are the best strategies for the moment. Current developments give us unique opportunities to invest in the future. Three ways managers can benefit from and plan for growth are presented by the authors.

The stock prices of technology firms have fallen recently. The value of the Ark InnovationETF has fallen from its peak. This downfall is similar to the decline in the stock market from 2000 to 2002, which ended in a recession.