By the end of 2020, it’s hard to find a more successful fund manager than Cathie Wood, CEO and chief investment officer of ARK Invest.
ARK’s flagship fund, ARK Innovation ETF ARKK,
has jumped 154% this year, surpassing 43% in the rise of the Nasdaq Composite COMP,
and other ARK funds, including the ARKG ARK Genomic Revolution ETF,
they have also had meteoric gains. The only real sour note came this week, with fund losses and, uniquely, with exits. But according to FactSet Research, the innovation fund has raised $ 9.4 billion in cash this year, the genomic fund has swallowed $ 5 billion in assets and its next-generation Internet fund ARKW,
has attracted about $ 3 billion in flows.
In a note to clients this week, Wood said there are five “innovation platforms” that companies must invest in or lose their way in: DNA sequencing, robotics, energy storage, intelligence. artificial intelligence and blockchain technology. These platforms involve 14 technologies, including gene therapies, 3D printing, cloud computing, big data analytics and cryptocurrencies, he said.
This technological innovation puts at risk large industries: energy, industrial, consumer discretion, communications services, health care and financial services, which make up more than half of the S&P 500 SPX,
she said.
Traditional and fixed income indexes are increasingly populated by so-called value traps, stocks and bonds that are “cheap” for a reason, he added.
There is an economic forecast associated with this disorder. “If our forecasts for the five innovation platforms come close, nominal GDP growth in the US is likely to decline from 4.1% at an annual rate over the past five years to 2-3%, regaining momentum only later of new technologies and solutions gain enough critical mass to move the economic needle, “he said. Both volume growth and inflation will reach the bottom of expectations.
The buzz
Senate Majority Leader Mitch McConnell said he would not vote on the $ 2,000 stimulus controls unless he adheres to provisions that override legal protection for companies, such as the owner of Google, Alphabet GOOG,
and the social networking platform Facebook FB,
as well as establishing a commission to examine President Donald Trump’s unfounded allegations of election fraud.
Betting markets continue to favor Republicans, while recent polls in Georgia are tending to the leadership of Democrats occupying both seats in the Senate, which would give the party control of both houses of Congress and the presidency.
Coronavirus frontline care continues to be the slow implementation of vaccines in the United States, as the virus toll increases. Daily hospitalizations reached 125,220 people, with 3,903 deaths, according to the COVID-19 monitoring project, while the Centers for Disease Control and Prevention reported that 2.8 million have started the process. of vaccination. China approved its first vaccine, from the state conglomerate Sinopharm 1099,
which says it is 79% effective, while the US may not approve the vaccine from pharmaceutical company AstraZeneca AZN,
until April, according to a senior Trump administration health official.
The oil producer Exxon Mobil XOM,
said in a presentation by the Securities and Exchange Commission that it plans to make a reduction in value of up to $ 20 billion in the fourth quarter.
Alden Global hedge fund has made a non-binding offer to buy the shares it does not yet own from Tribune Publishing TPCO,
for $ 14.25 per share. Tribune closed Wednesday at $ 12.79.
The United States said it would subject the European Union to additional tariffs, on planes making parts from France and Germany, untrue wine from France and Germany and cognac, in what it said was a response to the EU’s calculation of as imposed by American tariffs. The longest-running dispute is over state aid to Boeing BA aircraft manufacturers.
and Airbus AIR,
Weekly unemployment claims are the latest economic indicator to be published in 2020.
The graph
Goldman Sachs economist Ronnie Walker finds that the job market hasn’t changed much (for better or for worse) since the November employment report. The good news is that the COVID-19 pandemic has not had much of a scarring effect. Two-thirds of the 25 million jobs initially lost since the start of the pandemic have returned and 42% of new unemployed since February say they are in temporary layoffs, he said.
The market
It looks like a quiet end to a great year, with little futures movement in ES00 stocks,
good TMUBMUSD10Y,
or the DXY dollar,
Bitcoin BTCUSD,
it was where the action went, with the cryptocurrency surpassing $ 29,000.
Random readings
Becky Hammon became the first woman to lead a team in National Basketball Association history, taking charge of the San Antonio Spurs Wednesday night after the expulsion of Gregg Popovich in the first half.
The father of the Prime Minister of the United Kingdom, Boris Johnson, said he was applying for French citizenship.
American rivers change color, as shown by satellite images.
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