Since this year$Nasdaq Composite Index (.IXIC.US)$For a cumulative increase of more than 16%It was the best January performance since 2001 and the biggest monthly increase since July last year.
At the same time, Casey Wood, a "wooden sister" who has been boasting that he invests mainly in "long-term innovation" technology stocks,$ARK Innovation ETF (ARKK.US)$It has also achieved a "big rebound".
Unlike last year when risky assets and new technologies were sold off, "wooden Sister" now seems to be more confident: ARKK is up 42% so far this year, compared with the same period.$E-mini NASDAQ 100 Futures Main(MAR3) (NQmain.US)$It's up only 17%.
Sister Mu believes that her flagship fund now provides investors with better long-term innovative investments than the most popular growth stock benchmark in most markets.We are the new NASDAQ.
Not long ago, "wooden Sister" expressed her views on the impact of the current macro situation on stocks at its quarterly investor seminar:
In 2022, the market brought in a lot of pessimism about inflation and interest rates, which dealt an uneven blow to innovative stocks.
So far this year, we are happy to see bond yields start to fall. And if the logic of the damage done to growth stocks by rising interest rates last year is reversed, then the discounted value of the company's future cash flow should rise and the value will be revalued.
As in the early 1980s, stocks need to note that the Fed is sending a signal to end the process of raising interest ratesI think the Fed is about to end this tightening.By mid-2023, inflation could fall to 3 per cent or less.
At present, 10-year Treasury yields have begun to fall, and the market generally expects the Fed to further slow the pace of raising interest rates. in addition, there are investors in the market who do not believe that the Fed will really implement its plan to keep interest rates above 5% for some time. Traders are betting that the Fed will start cutting interest rates by the end of the year.
Treasury yields fell sharply in January. The yield on 10-year Treasuries fell to about 3.4 per cent from a peak of 4.3 per cent in October.
Finally, wooden Sister also said that the United States entered a recession last year because of excess inventory. She said that because of the current US economic downturn and the easing of inflation, it should prompt the Fed to reverse monetary policy, which will benefit her fund.
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