Cathie Woods is the Warren Buffet of ETFs for the Millennials. She has the backing of the Tesla cult followers and the WallStreetBets crew. But it's not just the Millenials that are backing Cathy. The Smart Money on Wall Street is also backing Cathy. But the proof is in the pudding...check out these numbers over the past 12 months:
- ARK Genomic Revolution ETF ARKG — up 200%.
- ARK Innovation ETF ARKK — up 150%
- ARK Next Generation Internet ETF ARKW — up 150%
- ARK Autonomous Technology & Robotics ETF ARKQ — up 100%
- ARK Fintech Innovation ETF ARKF — up 100%
Cathie has been publicly saying she has been buying Tesla on the way down as she feels nobody is pricing in ride sharing in their models despite Tesla using AI to log in over 30 billion miles of real world driving data. But Tesla is now down 32% from it's all-time high. Cathy has also been buying Palantir in recent weeks too. But Palantir is also down $3-$4 since she stated buying the stock. However, Tesla and Palantir are just a subset of what's going on in the tech sector.
The renewed bout of Treasury volatility spurred a surge in bond yields on Wednesday, dragging down stocks as investors grappled with concern over stretched valuations.
A selloff in high-flying giants such as Apple Inc. and Amazon.com Inc. outweighed gains in banks and energy producers. The Nasdaq 100 slumped to a two-month low, bringing its losses from a February peak to about 8%. The S&P 500 extended its slide into a second day, while the Dow Jones Industrial Average outperformed. Benchmark U.S. government yields approached 1.5%, with bonds pricing in the highest five-year inflation expectations since 2008. Traders also assessed data pointing to a slow and uneven economic recovery from the depths of the pandemic.
Here's the deal, the tech sector has led the Markets for the past 10 years...when interest rates were low. Now that interest rates are creeping up, according to Thomas Lee of Fundstrat, we might see other sectors leading he Markets this decade.
It could be the reason why ARK Innovation ARKK, ETF which includes stocks like Tesla, Square, Zillow, Roku, etc is down more than 20% from its peak at $156.58 set Feb. 12…which means the ETF is in a bear market.
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