Ark ETF News

125 Billion Reasons For A Volatility Spike After Friday''s "Deep" Options Expiration Submitted by SpotGamma , access to a full list of stocks with estimated impact is available at the end of this note** The Event: This Friday, January 21st, deep in the money calls worth billions of dollars are set to expire . Deep in the money calls are unique, because they are valued as being essentially equivalent to shares of stock (referred to as a Delta 1 position). Most of these calls were purchased in 2021 and have participated in the massive stock rally over the last year (S&P500 +24% since 1/1/21). The Participants: We think these calls are held by a wide variety of players, from large hedge funds all way to wealthy individuals. For example, its well known that Nancy Pelosi favors purchasing long-dated call options. By purchasing large, long-dated call positions, investors gain levered exposure to higher stock prices, while limiting downside risk. Meaning, they can pay a premium to buy more upside through long-dated calls then they can get by buying shares of a company’s stock using the same amount of investment capital.

The ARK Innovation ETF has suffered a severe drawdown and is now close to erasing its COVID-era gains.

It is time to admit that the ARK Innovation ETF was a bubble. It is now bursting and hurting aggressive growth investors.

Think every Cathie Wood stock is expensive? Think again.

How Goldman Is Convincing Its Clients Not To Freak Out About Fed Rate Hikes Rate hikes are now just right around the corner and traders are freaking out, but not so fast according to Goldman. Following the FOMC meeting in mid-December, and especially last week''s FOMC minutes and the subsequent jawboning by various Fed officials,, it has become clear that the Fed will not only double the pace of tapering but also signaled three hikes in 2022. As a result, virtually all sell-side economists - even stern holdouts such as Morgan Stanley and Bank of America - have raised their forecast from three hikes in 2022 to four with the first hike now expected to occur in March. Their forecast reflects the greater sense of urgency on behalf of FOMC participants towards quelling inflation, which rose to a four-decade high of 7% as measured by the latest year/year CPI. Why this urgency? Because as one can imagine, Biden was very clear in what Powell''s mandate was when he was renominated: "crush inflation as it is crushing my approval ratings", because as BofA''s Michael Hartnett noted on Friday , "US inflation is up from 1.4% to 7.0%, while Biden''s approval rating is down from 56% to 42% past 12 months." But why is the Fed rushing to hike when a growing chorus of economists now agrees with us that the Fed is hiking right into a recession (or alternatively, hiking to create a recession) an observation that was validated by Friday''s dismal retail sales data and even without validation, the endgame is clear: as David Rosenberg noted recently, every time the US has had 5%+ inflation, it ended in recession.

Inflation is scorching hot, raising the risk of much higher interest rates.

Higher interest rates lower the present value of future cash flows and tend to hurt long-duration assets like aggressive growth stocks. Any runoff of assets from the Fed's balance sheet will be method

Yahoo Finance's Alexandra Semenova details Cathie Wood's affirmation of the ARK ETF's outlook as inflation and tech sell-offs are appearing to be the fund's biggest obstacles in early 2022. Don't Miss

"We've been through a very difficult time since the significant rotation from growth into value, and I want you to know that we're in there with you."

Vaccine Mandates Are A Driver Of Wage Inflation Submitted by QTR''s Fringe Finance This is Part 2 of an exclusive interview with Doomberg, the collective that runs the Doomberg Substack . During this interview series, we discuss their outlook on 2022, China-based equities, Joe Rogans influence on the media, ARK Invest, silver and gold, the Elizabeth Holmes trial and inflation. On my last interview series with Doomberg , they predicted uranium would double or triple and laid out a semi-serious case for oil going to $300 per barrel. Doomberg publishes skeptical analyses through the hard money/Austrian lens and its objective is to be funny without being silly, to teach without being self-indulgent, and to provoke without being polarizing. They publish 10-12 pieces a month, which you can read for free here . You can read Part 1 of this interview here . Q: Whats your favorite piece youve written of late and why? How can it be informative for investors? Thats like asking us to select our favorite child!

The swift move upward in interest rates will continue to put pressure on long-duration plays in the equity and fixed-income markets.

It's just one deal, but genomics companies with exposure to in vivo gene editing may be getting a much-needed boost after blue-chip pharmaceuticals company Pfizer (NYSE:PFE) announced a related agreem

ARKK: Disruptive Tech Investing Has Never Been A One-Year Approach

Tesla Slips Under $1000, Continuing Longest Losing Streak In 10 Months, Despite Goldman PT Hike Shares of Tesla have slipped under $1000 per share in the pre-market session this morning, setting up to extend a 5 day losing streak for the company. The streak of down days, should it continue through today''s cash session, would be the longest losing streak for the EV company in 10 months, Bloomberg noted this morning. The move comes in the weeks following Elon Musk offloading more than $10 billion worth of stock. Meanwhile, Goldman Sachs, who has been involved in numerous Tesla fee-nancings financing efforts in the past, has name the automaker its "Top 2022 Pick" heading into the new year. The investment bank said that Tesla is ".. best-positioned to benefit from broad-based EV market growth .. given its strong market share, global presence (including new factories it is ramping this year ..) and its leadership position in clean transportation/EVs .." "We expect Tesla to expand margins in the intermediate term as it ramps the important Model Y product as well as new factories in Berlin, Germany and Austin, Texas, and in the long-term as it increases its mix of software revenue," Goldman wrote in a Sunday note. "We see upside to FactSet consensus estimates in the next few years.

ARKK''s Investors Have In Aggregate Lost Money By Simon Lack of SL Advisors Last Thursday Jim Cramer described the performance of the ARK Innovation ETF (ARKK) run by Cathie Wood as “ attrocious ”. This caught my attention – Cramer, whether you love him or not, doesn’t often criticize other asset managers. It turns out that the demise of ARKK highlights what happens too frequently in finance. To wit, because inflows to ARKK followed strong performance, as is usually the case, it turns out that the cumulative P&L on ARKK is negative. It peaked last February at just under $12BN and has been in steep decline ever since. At the beginning of this year it crossed into negative territory. The average dollar invested in ARKK has lost money. I employed this type of analysis when I wrote The Hedge Fund Mirage a decade ago. The high returns hedge funds generated in the 1990s weren’t enjoyed by many, because Assets Under Management (AUM) was small. There just weren’t that many clients. Flows followed performance, and by the 2008 financial crisis the hedge fund industry was big enough that in one year it lost all the earlier profits ever generated for investors.