Cathy Wood Bubble Bursts as ARK Funds CRASH! Enter into a Severe Bear Market

Stock-Markets / Tech Stocks May 11, 2021 - 01:41 PM GMT

Whilst the Dow has been trading at NEW all time highs, supreme media high risk stocks pumper's ARK funds have entered into a severe bear market as ARK bubble finally bursts. Those invested in ARK funds are in for a more pain over the coming weeks and months as reality catches up with the fantasy valuations that the Cathy brigade had lifted the likes of Tesla to.

In fact in response to Patron queries I recall warning investors in ARK funds over 2 months ago in the comments section of AI Tech Stocks Buying Ratings, Levels and Valuations March 2021.

"Hi Nadeem, wonder if you know about Cathy Wood and her Ark Invest ETFs? What do you think about them?"

"I'm not a funds guy, I prefer to own the actual stock. Contrary to what most understand, funds are RISKIER than holding invidual stocks, they can implode, get paralysed, enter death spirals. Not saying it will happen to Ark, but if its investing in small and medium cap speculative tech stocks than its ultimate fate could be an investors nightmare. At least I know Google will come good whatever happens short-term."

So I would not be surprised if what I warned of comes to pass as over the decades I have seen it happen many times before, panicking investors seeking to exit funds results in forced selling in high risk stock holdings driving stock and fund values sharply lower thus resulting in more panic selling amongst investors, a death spiral to the point when funds suspend withdrawals.

In quick technical terms ARK has fallen to support so probably will bounce from here but that does not mean that the ARK bear market is over let alone to expect a resumption of the rally into the Feb highs..

So lets see if the ongoing sell off in tech stocks can resolve in buying opportunities in AI stocks.

This article is an excerpt form my latest in-depth analysis that concludes in buying levels for AI tech stocks. AI Stock Buying Levels, Ratings, Valuations and Trend Analysis into Market Correction that was first been made available to Patrons who support my work.

Contents:

TESLA
Cathy Wood ARK Funds CRASH!
India Apocalypse Heralds Catastrophe for Pakistan and Bangladesh
Covid-19 in Italy in August 2019!
Stock Market Early Summer Correction Trend Forecast
Stocks Expensive or Cheap Indicator (EC)
AI Stock Buy % Rating Review
1. GOOGLE - $2398
2. AMAZON - $3312
3. MICROSOFT - $252.5
4. APPLE - $130
5. FACEBOOK - $320
6. NVIDIA - $592.5
7. AMD - $78.8
11. IBM - $145.5
12. INTEL - $57.7
AI Stocks Buying Levels Update May 2021
So what am I going to do
GPU Mining FREE MONEY!
CHIA Crypto Farming with Your Hard Drives Insanity!

So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

My analysis schedule includes:

More High Risk Tech Stocks - 30% done
Bitcoin Trend Forecast - 40% done
UK House Prices Trend Analysis - 10% done
How to Get Rich! - 70% done
US Dollar and British Pound analysis
Gold and SIlver Price Analysis

Again fFor immediate access to all my work do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

And ensure you are subscribed to my ALWAYS FREE newsletter for my next in-depth analysis.

Your analyst locked an loaded for the next AI stocks discount sale that should soon start to materialise as per my forecast of 11th Feb..

Nadeem Walayat

http://www.marketoracle.co.uk

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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