That outside gain that turned kathy wood Into one of the world's most famous Proponents of active fund management is Quickly evaporating that's some of her Favorite stock picks tumble and her etfs Along with them let's get more with Bloomberg's laura right laura it's been Brutal for arc It has been brutal for art but look Kathy woods she can tweet about why Passive investing is a misallocation of Capital all she wants but what she Cannot refute is that her arc innovation Etf has lost its status as an Outperformer against the s p 500. look The inception of her fund back in 2014 Since that period it seemed a net asset Value gain of 127 Now for the same period the s p 500 Stands at 136 It's been an ugly period for tech as Investors are nervous about frothy Valuations the ark innovation etf has Tumbled 70 from its peak last year and What my next chart will show you i'll Break it down for our radio listeners it Plots the goldman high valuation Software basket against u.s 10-year Treasury yields over one year and you Can see last year the gap between the Two was still wide as tech outperformed Interest rates low yields muted then the Convergence starts to emerge the end of Last year with the tech route investors
Anticipating normalization from the Federal reserve 2022 really Characterized by u.s 10-year treasury Yields moving toward their highest level In 2018 a hike from the fed in march a Hike from the fed in may of 50 basis Points and what this really shows us is That investors they want to see returns They want to see pricing power that Promise of future growth is delivered Upon in an environment where inflation In the world's largest economy stands at Eight percent
