With Tech Momentum Tanking, Is Cathie Wood’s Ark Sunk?

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 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 as Future of Wealth Head Trader Lance Ippolito is about to explain in today’s video, 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…

Sector Rotation Strategy

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.

sector rotation strategy

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, Lance is diving into Archegos and Ark, and he’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.

As always, if you want to see more content like this, don’t forget to like and subscribe to our YouTube channel. Also make sure to click the notification bell to let you know when new videos are available to watch.

P.S. I just caught wind of Chuck Hughes announcing the biggest project of his entire career: the Triple Threat challenge…

A chance for everyday traders to completely transform their lives over this summer…

He’s revealing the secret behind the strategies that gave him the chance to grow a small $5,900 account into more than $212,217 — in just two years!

So he’s equipping people with the tools necessary to bag the returns of a lifetime… 

And to become championship-level traders on their own!

Check it out here. 

2 Responses

  1. Thank you Lance for intelligent comments on what passes for “great disruptive ” investing. Someone has to say the emperor has no clothes.

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