Cathie Wood's $2B loss shows the stocks bubble has burst: JPMorgan strategist

When the Fed tightens, growth stocks like those tend to see their share price plummet because higher interest rates chip away at the future cash flows that make up a key part of their valuations.

From its peak in February 2021, ARKK has crashed 74% as investors started to weigh up the impact that rising interest rates would have on stock prices. It's down 38% since"The valuation hit has been so severe to our strategy, and that was all related to the Fed jacking up interest rates 19-fold in less than a year.

SVB's share price cratered two weeks ago after it disclosed a $1.8 billion loss on its bond holdings and customers like Peter Thiel's Founders Fund pulled their deposits from the bank.

because the absolute insistence on a favorable environment in policy vs reality is always the way to “manage”

$2 billion loss. Holy shit!

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Cathie Wood says rising rates hit her strategy like an earthquake and cyclical stocks are nextArk Invest's Cathie Wood said rapid interest rate hikes are now starting to hit more cyclical pockets of the market. Why is she still relevant? She had a good run w/ $TSLA but that was over a long time ago. The Fed has the banks on the brink of systemic collapse. Time for them to realize their mistake raising rates way too fast, way too far. They need to decrease rates 50 bps but nobody wants to go public with them. so what was she thinking when they were printing free money and the Inflation was keep going up?
Source: CNBC - 🏆 12. / 72 Read more »