John Authers at Bloomberg writes that the dramatic plunge in stock prices is rooted in over-valuation. Investors are heading to less-exciting parts of the market…
For another dramatic illustration of the disaffection with what had previously been hot, the following chart shows the performance of the ARK Innovation ETF, known as the flagship of the technology growth investor Cathie Wood, and the Invesco S&P 500 Equal Weight ETF…after Monday’s selloff, all of ARK’s advantage for the last five years has evaporated. At any point over that five-year period, you would have been better off buying the equal-weighted index rather than the stocks in ARK:
Bloomberg