Rising from the Ashes: Resurgence of Cathie Wood's Funds?
While narratives may fade, the transformation of the global production system perseveres for decades.
In the realm of market dynamics, a surprising twist of events unfolded as inflation emerged as a formidable foe, mercilessly striking down the Nasdaq in December 2022, unleashing a profound drawdown . Yet, within the realm of unpredictability lies the potential for an unexpected revelation—a paradigm-shifting wave of disinflation that holds the power to breathe new life into the Nasdaq and the ARK funds, propelling them towards soaring heights.
The stagflationary narrative of 2022 cast Cathie Wood as an unexpected antagonist, facing the trials of an astonishing 81% drawdown for her Ark funds. However, should the tide turn, and inflation recedes below the Federal Reserve's 2% target, a remarkable resurrection awaits. Cathie Wood, once considered a mere mortal, could transcend into the realm of a revered superhero, captivating the world with her triumphant return in the year 2024.
Price Production Index(Black) Vs Nasdaq Drawdowns ( Red). Source: St Louis Federal Reserve.
ARKK ETF. Source: Yahoo Finance.
Yet, in the ever-changing landscape of market narratives, one must tread carefully, for stories can swiftly fade away like fleeting whispers in the wind. Amidst this uncertainty, a captivating saga unfolds—the reindustrialization of the United States and a burgeoning wave of technological revolution poised to surge forth. Their true worth awaits validation, and when the moment arrives, their impact will reverberate, heralding an era of unparalleled growth and transformation.
Guillermo Valencia A
July 12th, 2023