Monday morning stocks gapped up on the open on news that there were some talks between Russia and Ukraine. Traders looking for a reason to buy or to believe in a bottom grasped on that news to bid the futures up, just like they did last week on Thursday and just like on that day the opening fizzled out. The Nasdaq ended up down and so did just about everything else.
Of course, the ARKK fund, which Cathie Wood manages is among the worse things one can hold on to now, falling over 5% on Monday, and yet her popularity among the masses remains strong. ARKK in fact continues to be listed as a top 100 Robinhood position and all you have to do is go to Youtube and type in Cathie Wood to quickly find dozens of Youtubers praising her and trying to mimic her technobabble speak to get a following of their own.
Here are some interesting Tweets, though, about her and her fund.
1/ ” $ARKK was the perfect vehicle for a fresh generation of naive investors who overestimated their own competence. Most did not know enough to grasp what they didn’t know. Whether ARKK’s founder, Cathie Wood, understood what the risks were I can’t say.”
— Montana Skeptic (@montana_skeptic) March 11, 2022
3/ ” $ARKK is certain to be remembered in financial history as the quintessence of disastrous speculation during the speculative bubble of the early 2020s.”
— Montana Skeptic (@montana_skeptic) March 11, 2022
5/ This is all from Jim Sloan, one of the most experienced & wise writers @SeekingAlpha.
— Montana Skeptic (@montana_skeptic) March 11, 2022
Cathie Wood, thorugh her constant usage of technobabble, turned herself into a prophet for the young app trader, who got into the markets after the March 2020 shutdown using government aide money to fund their accounts. Many lost their jobs, and many more became socially isolated due to covid so the phone became their primary means of interacting with the rest of the world and the app their most favored mechanism to engage in human action. Now that we are in a bear market the results have been devastating.
For instance look at this post on a Reddit board.
And look at this.
“Boyfriend (25M) addicted to NFT’s and crypto. Has blown thousands of dollars and doesn’t see the problem”
— Ramit Sethi (@ramit) March 12, 2022
Please come on my podcast pic.twitter.com/SdanstHwxu
The losses in the top 100 Robinhood stocks, many of which are ARKK positions, are crushing people.
The combination of covid isolation and Robinhood trading has caused millions of young people to essentially become app gambling addicts who are ruining their lives. The first step they must take to save themselves is to sell everything they have in their accounts and delete their apps off of their phones. If they want they can get serious about trading by studying and figuring out what it takes to win, but most are best to walk away, not willing to take it seriously enough to take the time to do the work needed to become a winner.
In case you missed it I did a video about the big trend impacting all markets that one can actually profit from, but it takes more than looking at a price quote on an app to do it.
-Mike
