As 2020 draws to a close, it’s hard to find a more successful fund manager than Cathie Wood, ARK Invest’s chief executive and chief investment officer.
ARK’s flagship fund, ARK Innovation ETF ARKK,
increased by 154% this year, up from 43% for the Nasdaq Composite COMP,
and other ARK funds, including the ARKG ARK Genomic Revolution ETF,
they also had meteor gains. The only real sour note came this week, with both funding losses and outflows. But according to FactSet Research, the innovation fund attracted $ 9.4 billion in cash this year, the genomic fund encompassed $ 5 billion in assets and its next-generation ARKW internet fund.
attracted nearly $ 3 billion in cash.
In a note to customers this week, Wood said there are five “innovation platforms” in which companies must invest or lose their way: DNA sequencing, robotics, energy storage, artificial intelligence and blockchain technology. These platforms involve 14 technologies, including gene therapy, 3D printing, cloud computing, big data analytics and cryptocurrencies, she said.
This technological innovation threatens entire areas of industry – energy, industries, discretionary consumers, communications services, healthcare and financial services, which make up more than half of the S&P 500 SPX,
she said.
Traditional equity and fixed income benchmarks are increasingly populated by so-called value traps, stocks and bonds that are “cheap” for a reason, she added.
There is an economic forecast for this revolt. “If our forecasts for the five innovation platforms are close to the limit, nominal GDP growth in the US is likely to slow from 4.1% at an annual rate in the last five years to 2-3%, regaining momentum only after new technologies and solutions gain enough critical mass to move the economic needle, ”she said. Both the increase in volume and inflation will enter the lower part of expectations.
Buzz
Senate Majority Leader Mitch McConnell has said he will not support voting for $ 2,000 incentive checks unless they are attached to provisions that would remove legal protection for companies, including Google owner Alphabet GOOG.
and the social networking platform Facebook FB,
as well as setting up a commission to look into President Donald Trump’s unfounded claims of electoral fraud.
Betting markets continue to favor Republicans, while recent polls in Georgia are trending toward Democrats occupying both seats in the Senate, which would give the party control of both houses of Congress and the presidency.
The focus on coronavirus continues to be on the slow launch of vaccines in the US, as well as the growing value of the virus. Daily hospitalizations reached 125,220, with deaths totaling 3,903, according to the COVID-19 follow-up project, while the Centers for Disease Control and Prevention reported that 2.8 million had started the vaccination process. China has approved its first vaccine, from the state conglomerate Sinopharm 1099,
which says it is 79% effective, while the US may not approve the vaccine from pharmaceutical company AstraZeneca AZN,
until April, according to a top Trump administration health official.
Oil producer Exxon Mobil XOM,
said in a statement by the Securities and Exchange Commission that it intends to make a value reduction of up to $ 20 billion in the fourth quarter.
Alden Global hedge fund has made a non-binding offer to buy shares it does not already hold in Tribune Publishing TPCO,
for $ 14.25 per share. The Tribune closed Wednesday at $ 12.79.
Enphase Energy ENPH,
will replace Tiffany, which is acquired in the S&P 500 index, announced the S&P Dow Jones Indices.
The United States has said it will subject the European Union to additional tariffs on aircraft producing parts from France and Germany, sparkling wines from France and Germany and brandy, in what it said is an answer to the EU’s calculation of how imposed US tariffs. The wider, longer-running dispute concerns state aid to aircraft manufacturers Boeing BA,
and Airbus AIR,
The weekly unemployment claims are the latest economic indicator to be launched in 2020.
Chart
Ronnie Walker, an economist at Goldman Sachs, notes that the labor market hasn’t changed much – either for better or for worse – since the November employment report. The good news is that there was not much scarring due to the COVID-19 pandemic. Two-thirds of the 25 million jobs initially lost since the pandemic began have returned, and 42 percent of new unemployed in February say they are temporarily laid off, he said.
Market
Looks like a quiet end to a big year, with little movement in ES00 futures stocks,
TMUBMUSD10Y bonds,
or the DXY dollar,
Bitcoin BTCUSD,
there was the action, the cryptocurrency exceeding $ 29,000.
Random readings
Becky Hammon became the first woman to lead a team in the history of the National Basketball Association, taking over the San Antonio Spurs on Wednesday night, after the expulsion of Gregg Popovich in the first half.
The father of British Prime Minister Boris Johnson said he was applying for French citizenship.
US rivers are changing their colors, satellite images show.
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