🎧Cathy Wood’s ARK wasn’t built for a flood. Rapid growth of an ETF -actively traded- comes back to bite the fund.
🎧Prominent investor, Bill Ackman says “he kicks himself for not understanding crpto currencies” but says “it has no intrinsic value.” We are in a market where images can sway the market. But you have to really look hard to separate out the research driven elements of the market.
🎧Inflation is the main driver of the volatility in the market. The most recent numbers that came out, the headline was alarming although there a facets of it that you can explain. Inflation has been muted since the financial crisis in 09. April of 2020, everything was shutdown and there was panic causing the ecnomy to go into deflation. Now that things are going back to normal, there are shortages in certian areas. Things are not flowing as they should be. Demand came back sooner than expected. Now there are shortages from chips to homes. For inflation to sustain it must be demand driven so it remains to be seen how long these supply bottlenecks last. Sometimes inflation becomes a self fullfillinfg prophesy. At what point will the Fed come in and hike interest rates? Generally, earning for companies have been quite good and the stock price still dropped shortly thereafter. How much is already priced in in anticipation of good earnings.