The stock market in recent months has become a battle between tomorrow’s transaction and the live-for-today offer, and in the last week it has become messy.
Shares valued on promises for a transformed future have been hard to sell in favor of those ready to thrive in today’s spring economic recovery. However, after last week’s serrated swings, which culminated in Friday’s crescendo sale and a strong reversal, could these opponents be able to coexist more peacefully for a while?
“Disruptive technology” stocks and pre-revenue receipts and speculative SPACs with a high story-to-substance ratio have been in full color since mid-February.
Fixing ARK Invest ETFs from holiday to famine has been adequate, irresistible and probably now exaggerated. The ARK Innovation (ARKK) flagship fund on Friday morning lost more than 30% in about three weeks. The fund has been popular enough to make stocks hard to borrow, and Wall Street offices have been working to create synthetic versions of ETFs to bet on hedge funds.
Was there a short-term capitulation in this subsector, which preceded a 10% return in ARKK from late morning until the close of Friday?