What we’re reading (1/11)
“Cathie Wood’s Rollercoaster Performance Offers A Familiar Lesson About Volatility” (Forbes). “ARKK’s ETF flows indicate the average investor in the fund is underwater. StoneX market strategist, Vincent Deluard, summed up why in a recent report. ‘The ARK Innovation ETF has returned 346% since its inception but no value has been created due to flows’ poor timing,’ he writes.”
“AQR Quant Fund Kicks Off The Year With 10% Gain After 2021 Rebound” (Financial Times). “A computer-powered investment fund run by AQR posted double-digit gains in the opening days of 2022, building on a strong performance last year that has bolstered industry hopes that the long ‘quant winter’ has finally passed.”
“Jamie Dimon Says The US Economy Is Booming, Inflation Will Stay Hot, And The Fed May Have To Hike Rates Hard...” (Insider). “‘I'd personally be surprised if it's just four increases next year. I think that four increases of 25 basis points is a very, very little amount and very easy for the economy to absorb,’ referring to how times the Fed will hike interest rates in 2022.”
“Fed’s Powell Says Economy No Longer Needs Aggressive Stimulus” (Wall Street Journal). “Mr. Powell said he was optimistic that supply-chain bottlenecks would ease this year to help bring down inflation as the Fed takes its foot off the gas pedal. But he told lawmakers at his Senate confirmation hearing that if inflation stayed elevated, the Fed would be ready to step on the brakes. “If we have to raise interest rates more over time, we will,” he said.”
“Washington, D.C., Has An Insider-Trading Problem” (New York Magazine). “A surprisingly large number of Congress members also appeared to have been able to use their inside knowledge for financial gain while unemployed Americans were lining up at food banks. Four senators were probed by the Department of Justice for insider trading, and at least one of them is still part of an active SEC investigation.”
