If Cathy Woods Was A Stock, She Is Just Correcting Now

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Cathy Woods was the one who was the biggest Tesla bull out there years ago and said Tesla could hit $4000. People thought she was crazy, but she looked beyond the car making segment of the business. Her thesis was Tesla was also a chip manufacturer, a battery manufacturer and a data collector (think autonomous cars)

Cathy Woods was the one who said Bitcoin's market cap could hit $5 trillion market cap valuation. She cited the network value continuing to scale.

Cathy's MO is to be successful, you need conviction in your ideas and must be proud of your work, even amid criticism. And she has been able to put to work what she believes in though her ARK ETFs that invests in DNA sequencing, robotics, artificial intelligence, energy storage and blockchain technology.

But if Cathy was a hot stock, well, she is correcting now. Cathy was in a fierce battle with Resolute Investment Managers who wanted to a controlling stake in her company. Resolute helps distribute mutual funds and ETFs including Ark’s products and acquired a minority investment in Ark in July 2016 and had the option to purchase more of the company in 2021. Makes sense, Cathy's funds have been on fire this year. However, discussions recently in which she will retain full control of her management company.

Cathy continues to correct with the latest news today.

The largest product from Cathie Wood’s prominent exchange-traded fund lineup did something unusual on Tuesday -- it posted outflows.

ARK Innovation ETF (ARKK) had $137 million in outflows on Tuesday, its largest exit on record, according to data compiled by Bloomberg. Drawdowns are far from the norm for the $17.6 billion fund, which hasn’t experienced a daily withdrawal since early November nor a weekly one since February.

“Given the strong demand in the fourth quarter for ARKK and its hard-to-duplicate returns in 2020, it was inevitable that some investors would want to take profits,” said Todd Rosenbluth, director of ETF research for CFRA Research.

Source

As I mentioned if Cathy was a stock, she is just correcting. All uptrending stock correct, before they impulse again. I can't wait for 2021 to see what Cathy does next.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

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I dig old cathy she's a smart lady but she falls way too hard for Elons Circus barking, do I think he can deliver on his promises sure to an extent, I don't doubt the man, but overcapitalisation is just as bad as under capitalisation and to me it's looking at the entire EVM marketing and saying Tesla dominates the TAM for the next 10 years as it grows, which I doubt other manufactures would let happen, they will continue to compete for market share

Also if EVMs do take a larger market share in developed nations, demand for combustion engine cars goes down making it cheaper for developing nations to purchase, increasing the market share there

So I am conflicted on this pricing in of the future TAM on tesla's price got out ages ago, I can't deal with these nose bleed valuations, I leave that to better men

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