Reasons Why High Yield Will Likely Keep Pummeling ARKK
Back in December of 2020 - while the investor mania surrounding Cathie Wood and her flagship disruptive innovation ETF $ARK Innovation ETF(ARKK.US$ had hit an all-time high - analysts predicted that high yield would pummel high growth. Our reasons were pretty simple:
1. Any sector can outperform or underperform over a short time period, but over the past two decades, tech has actually underperformed the market.
2. There was a historic valuation disconnect between high growth stocks and high yielding stocks, with high growth stocks at historically high valuations and high growth stocks at relatively cheap valuations
3. Tech growth will slow down
4. The COVID-19 shot benefits REITs, Utilities, MLPs, and Consumer Staples but hurts tech
5. Yield-starved investors will push high yield securities to record highs
$Tesla(TSLA.US$ $Coinbase(COIN.US$ $Roku Inc(ROKU.US$ $Block(SQ.US$
1. Any sector can outperform or underperform over a short time period, but over the past two decades, tech has actually underperformed the market.
2. There was a historic valuation disconnect between high growth stocks and high yielding stocks, with high growth stocks at historically high valuations and high growth stocks at relatively cheap valuations
3. Tech growth will slow down
4. The COVID-19 shot benefits REITs, Utilities, MLPs, and Consumer Staples but hurts tech
5. Yield-starved investors will push high yield securities to record highs
$Tesla(TSLA.US$ $Coinbase(COIN.US$ $Roku Inc(ROKU.US$ $Block(SQ.US$
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Silverbat : Consolidation phase
Sam The Greater : Without Tesla she would literally be homeless
Mario TimberlakeOP Silverbat: I think so too
Mario TimberlakeOP Sam The Greater: LOL
Musky Sam The Greater: Lol. With or without. She will be out of this industry following Melvin Capital. She has to double down in High Growth Tech because of her greed in high fees. Is she going to tell her investors she is playing it safe in this climate. They will almost all pull out.