There’s something rotten on Wall Street, and I’m not talking about Elon Musk’s acting chops.
Cathie Wood has been a red-hot, A-list star of high finance since the onset of the pandemic. But there’s been a mass sector rotation strategy going on, and Wood’s Ark is taking on a lot of water…
Shares of her Ark Innovation ETF (NYSE ARCA: ARKK) shot into the stratosphere from March 2020 lows of $37.85 to a high of $159.70 in February 2021
The ETF’s portfolio reads like a who’s-who of growth tech stock darlings like Tesla Inc. (Nasdaq: TSLA), Teladoc Health Inc. (NYSE: TDOC) and Roku Inc. (Nasdaq: ROKU).
Everybody loves a winner… And for most of the year, Wood has been on one heck of a winning streak.
So it’s no surprise that a lot of the stocks her funds invest in grew cult-like followings… Every cult needs a leader, after all.
But winning streaks eventually come to an end. And this streak is the victim of a sector rotation strategy that began in February…
Ever since Bill Hwang’s Archegos Capital Management blew up on margin calls back in March, Wood hasn’t been winning nearly as much.
In a recent interview, she revealed that Hwang was one of Ark’s earliest investors.
And since Hwang was forced to exit in March, the outflows from Ark have increased in both size and frequency.
If ARKK’s chart were making similar moves to other indexes, that would be one thing…
But unfortunately, aside from some recent selling in the Nasdaq, every other major index is ripping to all-time highs. Investment banks and hedge funds are using sector rotation strategies and moving on to new winners.
In today’s video we’ll dive into Archegos and Ark, and I’ll show you why there are better ways to find trading opportunities and sector rotation strategies to move into instead of just shadowing Wall Street’s flavor of the month.
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P.S., We’ve all heard of insider trading…
It’s unethical and indefensible, and the punishment — jail — fits the crime.
But this doesn’t stop corporate insiders from using their information advantage like a cudgel to bulk up their wealth.
Meanwhile, everyone else is left scrambling to get in after their shares have catapulted the stock’s value to new heights…
These corporate insiders are literally pumping their own stocks, and doing it 100% legally…We don’t know about you, but that doesn’t sound fair.
So I decided to even the odds.