Stocks aren’t in a bubble...according to fund manager Cathie Wood

bee

Few fund managers have been more successful than Cathie Wood, the chief executive of ARK Invest and fund manager of the ARK Innovation ETF ARKK, 2.32% and ARK Genomic Revolution ETF ARKG, 1.51%, which according to FactSet have drawn in more inflows than any other actively managed stock exchange-traded fund over the last 12 months. In a monthly webinar, Wood made the argument against stocks being in a bubble.

“If there is a bubble anywhere, it is not in the equity market, it is in the fixed-income market,” she said.

stocks-arent-in-a-bubble-but-heres-what-is-according-to-fund-manager-ark-invests-cathie-wood

Derf

Is there more to this remark or just how one reads it ?
"Since 2018, there have been outflows of roughly $300 billion from equities, excluding share repurchases by companies. But there have been inflows of $1 trillion into bonds, she said. “If there is a bubble anywhere, it is not in the equity market, it is in the fixed-income market,” she said.

JD_co

Does it make sense to EXCLUDE share repurchases by companies - aren't buybacks a very real part of what keeps large-cap stocks buoyed (and increases EPS, technically)?

LewisBraham

Bear in mind that if your entire business model depends on investing in the stocks other investors say are in a bubble, you might be subject to some bias. I believe on Wall Street this is called "talking one's book."

Derf

If interested in fund flow, Google; What Are Fund Flows and Why Do They Matter?
From Morningstar.
Stay safe, Derf

sfnative

Well, she's probably at least half right -- the part about bonds.