Excerpt from Bloomberg quoting DataTrek co-founder Jessica Rabe:
…. “Parallels with that era and the dot-com bust that followed are increasingly used in discussions of ARKK because its price chart is eerily similar to that of the Nasdaq index of tech stocks more than two decades ago.
“Today marks the 253rd trading day from ARKK’s all-time high and on the same day in 2001 the Nasdaq was down 60% from its dot-com bubble peak,” Jessica Rabe, co-founder of DataTrek Research, wrote in a Tuesday note. “If the 2000/2001 analog continues, we can expect ARKK to continue trending lower over the next three weeks. The Nasdaq dropped 18.7% over the following 16 trading days.
The good news for investors and Wood is that there could be some temporary relief after that. Back in 2001 the Nasdaq then rallied 41% over the course of around six weeks, before resuming its declines”….
Read the full article here on Bloomberg!