Reversal of Fortune
How volatile is the stock market — and specifically, tech stocks — these days?
Consider the fortunes of ARK Invest’s Cathie Wood:
Cathie Wood, increasingly nicknamed “Queen Cathie” by traders on Reddit, is turning into the new stock market Oracle. Hundreds of millions of dollars poured into her family of five ETFs this year. ARK has roughly $60 billion in assets now, says ETF.com.”
–ARK’s Cathie Wood Schools Warren Buffett With 3 Top Stocks”; Investor’s Business Daily (2/23/2021).
In case you don’t have a calendar nearby, Feb. 23 was a week ago Tuesday.
Now, imagine the chagrin of any investors speculators who raced to jump on Wood’s bandwagon:
ARK Investment Management LLC’s highflying exchange-traded funds are firmly in a bear market following another round of steep declines Friday. The core five ETFs of star stock picker Cathie Wood’s New York asset-management firm fell between 4% and 7% in recent trading as shares of technology and other fast-growing stocks continued to sell off.”
–“ARK Funds Fall Into a Bear Market”; The Wall Street Journal (3/5/2021).
Can you say, “whiplash??”
Here’s a line that I don’t think will be discredited in the next 10 days, courtesy of Warren Buffett (Chairman and CEO of Berkshire Hathaway, Edina Realty’s ultimate parent company): “If you’re playing poker for 30 minutes, and you don’t know who the patsy at the table is . . . it’s you.”
