The stock market in recent months has become a struggle between tomorrow’s trading and live bidding for today, and in the last week has gone awry.
Stocks valued on promises of a transformed future have been hard to sell to those willing to thrive in today’s spring economic recovery. And yet, after last week’s jagged swings, which ended with a crescendo sold on Friday and a powerful upturn, could these opponents be able to coexist more peacefully for a while?
Stocks of “destructive technology”
Fixing ETFs for the holiday to starvation ARK Invest was appropriate, irresistible and probably already too much. The leading innovation fund ARK (ARKK) on Friday morning lost more than 30% in about three weeks. The fund is popular enough that stocks are difficult to borrow, and Wall Street bureaus are busy creating synthetic versions of ETFs so that hedge funds can gamble.
Was this a short-term capitulation in this sub-sector, preceded by a 10% rebound in the ARKK from late in the morning until the end of Friday?