Last Updated on September 18, 2022 by Mathew Diekhake
Since the start of the year, Cathie Wood has been saying that her stocks are undervalued and the larger capped stocks in Index funds are overvalued, but her stocks have always fallen and risen at the same time as the indexes. However, earlier this week we saw that change for the first time.
The ARKK fund saw a significant green day when both the Nasdaq 100 and S&P 500 were down in the red. Cathie Wood has said for months that when the US is in a recession her stocks will rise and the Nasdaq and S&P will fall. This is the first hint we’ve seen all year of that potentially happening.
Given how far the Nasdaq and S&P have fallen already this year, I don’t foresee ARKK rising while the indexes are falling becoming a new trend. Cathie Wood would disagree with me though, as she has stated several times that her funds have bottomed. Cathie first made the call that her stocks had bottomed in January when ARKK fell to $57 and yet her stocks fell much further the following months down to $35. So unfortunately her words don’t mean much at this point, though I do believe she honestly thinks her stocks have bottomed.
Image credit: Finviz