Monday, March 4, 2024
HomeBusinessJim Cramer says the 'Ark Invest phenomenon' appears to be over for...

Jim Cramer says the ‘Ark Invest phenomenon’ appears to be over for now

Date:

Related stories

What Is Predictive Analysis And Its Role In A Winning Marketing Strategy

If you’re in marketing, there’s a good chance you’ve...

Understanding the Duration of Botox

Botox is widely diagnosed in medical and beauty circles...

How to get free leads for my business

It doesn't matter whether you are a scaling startup...

The Business Of Living Longer: Longevity Supplements On The Rise

Humans have always sought ways to extend their lease...


CNBC’s Jim Cramer said Friday that Ark Invest’s stock-moving influence appears to be waning — at least for now.

Ark Invest’s family of exchange-traded funds were some of the best performers on Wall Street last year, but have not fared well in 2021 as investors rotated away from high-growth stocks and into economic recovery plays.

The “Mad Money” host said as the funds run by star money manager Cathie Wood’s firm struggled, the amount of outflows started to pick up. That has implications for the stocks that are components of the ETFs, Cramer said.

“It seems pretty clear that the Ark Invest phenomenon is no longer in play,” Cramer said. “We’re not seeing major outflows here, but the era of Cathie Wood propping these stocks up with her own buying bazooka, I think, it appears to be over.”

The opposite was true last year as investors started to notice how well Wood’s family of funds was performing, Cramer said, leading the firm to see a massive wave of inflows and new firepower to deploy into the market.

Cramer noted that Ark’s flagship ARK Innovation ETF have started to perform better recently as growth stocks returned to favor. Indeed, the fund is up about 2.4% over the past 5 days, while the S&P 500, by comparison, is down 1.9%.

ARK Innovation also rose 6% between June 7 and June 11.

“Here’s the bottom line: when you look at the fund flows, Ark Invest’s no longer propping up the turbo-charged growth stocks, which makes their recent rebound feel a lot more significant to me,” Cramer said.

See also  Nasdaq falls 2% as tech rout deepens ahead of Fed minutes By Reuters

“Maybe if this group keeps climbing, Cathie Wood can get her bazooka back, but until then the ‘WoodStocks’ will rise or fall on their own.”



Source link

Bellie Brown
Bellie Brownhttps://businesstimes.org
Hi my lovely readers, I am Bellie brown editor and writer of Businesstimes.org. I write blogs on various niches such as business, technology, lifestyle., health, entertainment, etc as well as manage the daily reports of the website. I am very addicted to my work which makes me keen on reading and writing on the very latest and trending topics. One can check my more writings by visiting Cleartips.net

Latest stories