Everyone's a genius in a bull market...? That's what troubles me the most about this bull market to be honest. So many clueless people who've been rewarded massively and on top of that considers themselves master investors/traders. Usually long only and condescending towards anyone who seems to suggest the market actually can go lower. To be fair, I do not know much about Cathy Woods, but that quote from JSOP reminded me very much of that guy I talked about. In the face of drawdown he still is able to explain it away.
If you look at her track record from when her fund started up until Feb 2021 it did outperform consistently mid-cap growth and even the QQQ. The stocks she invests in really do well in a deflationary environment but since the markets are freaked out about inflation there is no way for her stocks to do well based on the DCF model of valuation. I mean her stocks are really just long dated zero coupon bonds where the payoff is much later.
Don't think it's an unreasonable guess that soon ARKK will be on par with Nasdaq 100 since inception minus expenses.
Wood's big mistake was to sell the winner TSLA (still ultra strong) and double down on garbage. I wouldn't dance on her grave too soon though. Does it really seem likely we've seen the final Everything Bubble top, as opposed to a temporary pause? A couple weaker-than-expected inflation prints and the liquidity taps will be jammed open once again.
Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend and step off before it is discredited. — George Soros