Cathie Wood: her ARK fund is 40% (less …)
After ending 2021 by underperforming its benchmark (the NASDAQ) by more than 40%, thus alluding to the idea of a potential return of 40% per annum over the next five years, Cathie Wood's ARK fund got off to a similar start. hateful for 2022 beyond the first three trading days of the year.
Wood's flagship has already dropped -9.5% in just three sessions since he ensured that his "innovative" stock picks were in "deep value territory". It seems that the "deep value" has just become "the deepest value".
In addition to the horrific returns from the beginning of the year, Wood is once again underperforming its benchmark, which is already -5.92% below what the NASDAQ is tracking. In short, in the end, if you had bought the index, in a trivial way, you would have done better than one of the best known Wall Street gurus… .
In the end, even for Katie Wood the bells come to ring, the dead ones. As Zerohedge has noted in the past, the capitalization of its ARK fund has dropped 45% from its peak. Yet some of his bets, such as the one with Tesla, at least so far have worked. Others, like Robinhood, much, much less. Investors are rightly looking for real returns, not promises …
In short, in the end even Wood's star is fogging up, and it does so rather quickly. She is no longer the magician of the market and for ARKK the push of Tesla and some good shots on the market are no longer enough to keep the boat afloat. What a high yield of 40% for the next five years: here it is likely to be difficult even to break even!
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The article Cathie Wood: her ARK fund and 40% (less…) comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/cathie-wood-il-suo-fondo-ark-e-il-40-in-meno/ on Sat, 08 Jan 2022 07:00:24 +0000.