Stay updated with breaking news from Tech Stock Pullback. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
Ark's Innovation ETF soared 300% between March 2020 and February 2021. But it's since come crashing back to earth.
Mario Tama/Getty Images) This story is available exclusively to Insider subscribers. Become an Insider and start reading now. The broad consensus is that inflation fears are driving investors out of tech stocks this week. But CIO David Bahnsen says that overvalued tech stocks have flown too close to the sun. He thinks that the sell-off is "healthy," "inevitable," and "nowhere near over." What began as a sell-off among tech stocks on Monday spilled over into the rest of the market on Tuesday, with the Nasdaq down 2% at the marke...
And as tech-share prices surged, more and more investors wanted in, which pushed prices up even further. As Morgan Stanley Chief US Equity Strategist Mike Wilson put it, "momentum begets momentum." As the global economy gets set to reopen, and consumers get ready to spend their savings and coming stimulus checks — pushing inflation and therefore interest rates higher, which hurts growth stocks — Wilson sees new momentum leaders in the making. "The shift we have been highlighting in the composition of momentum is not over and the factor will continue moving toward cyclicals, lower quality,...