Market Factors: Another star fund manager, another painful lesson

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Plus, this week’s payrolls number may turn into a big market mover

Today, we delve into how the ARK Innovation ETF retells an old cautionary tale of what happens when investors chase performance. Plus, a look at why U.S. employment numbers might finally live up to the hype.FILE PHOTO: Cathie Wood, CEO of Ark Invest, speaks during an interview on CNBC on the floor of the New York Stock Exchange in New York City, U.S., February 27, 2023..

To the extent that investors chasing the 2020 performance were young or inexperienced and haven’t internalized the ways to guard against behavioural biases in investing I suppose is forgivable. It implies that every generation has to learn the rules of investing the hard way, through financial pain. Morgan Stanley chief investment officer Michael Wilson reports that his firm’s economists predict a payroll number above the consensus guess of 165,000. If that’s the case, the rally off the August 5th lows can continue.

 

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