What we’re reading (3/8)
“David Tepper Is Getting Bullish On Stocks, Believes Rising Rates Are Set To Stabilize” (CNBC). “David Tepper, founder of Appaloosa Management whose comments have been known to move markets, said it’s very difficult to be bearish on stocks right now and thinks the sell-off in Treasurys that has driven rates higher is likely over.”
“Cathie Wood’s ARK Faces Test as Tech Rally Cools” (Wall Street Journal). “The stock market’s swift turn against technology and other growth stocks has handed star stock picker Cathie Wood and her firm, ARK Investment Management LLC, their toughest test yet. The firm’s five exchange-traded funds all have declined more than 20% since early February, stung by a sharp rise in government-bond yields. The flagship ARK Innovation ETF has suffered the steepest declines, falling 27% from its Feb. 16 high. In comparison, the Nasdaq Composite Index has dropped about 8% over the same period.”
“How Do Silicon Valley Techies Celebrate Getting Rich In A Pandemic?” (New York Times). “The parties are on Zoom, the tax talk is on Slack, the house shopping is slightly less intense, and the vibe is cautious. It’s a weird time to become rich.”
“Elon Musk Lost $27 Billion Last Week” (CNN Business). “Elon Musk's net worth plunged last week as tech stocks got hammered and Tesla shares' stunning rise quickly unraveled. Wall Street is growing increasingly nervous about rising bond yields, which could make borrowing more expensive. That could eat into corporate profits, which is why investors have begun to reverse some of the positions they took over the past year in high-growth but risky tech stocks like Tesla.”
“The Biggest Private Island For Sale In The Bahamas Is About To Hit The Auction Block — And There’s No Minimum Bid” (Business Insider). “The 730-acre undeveloped island, known as St. Andrews or Little Ragged Island, is the Bahamas' southernmost and largest privately held island currently listed for sale, according to the listing. It features white sand beaches and deep water access that could accommodate large yachts. The listing notes that the island could be transformed into a private home or a resort with enough space for an 18-hole golf course.”
