https://twitter.com/SaraEisen/status/1520145078831964162
Sara Eisen
@SaraEisen
ARK Innovation Fund loses -28.9% In April
p.s. Remember a few weeks ago Woods was claiming her fund would return at least +50% per annum going forward?
Its pretty clear that while rising interest rates are in the news, tech stocks, especially the high PE speculative ones, will not do well. They say its because the computer models big companies use to estimate value use interest rates in discounted cashflow estimates of future value.
Rising interest rates hurt those numbers and make tech stocks less attractive.
Of course well established tech stocks with solid growth prospects should be immune, but some investors are dumping all tech stocks without picking out the good ones.
We are all hoping for a bottom one of these days but the Feds are talking of two more months of rising interest rates. Could be time to sell in May and go away.
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Gartner is still out there claiming we’re on the precipice of a major junk bond wipeout due to higher rates.
My $ARKK daily, weekly, and monthly charts which I added to Sara’s tweet:
https://twitter.com/peregreine/status/1520546833302491136
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@SaraEisen
$ARKK daily, weekly, and monthly charts which show the carnage: