Every problem looks like a nail when you have a hammer, Cathy Wood reflects on the damage caused by the Silicon Valley bank collapse Speaking to US Spokes, Cathy Wood, founder of Arch Invest, on the latest in the banking system Recession is the solution.
Wood tweeted that while the US banking system was seizing regional banks, Bitcoin, Ethereum and other crypto networks were seized in response to the threat of a bank run.
Musk didn’t explain his comment, so we may never know what happened in the U.S. just before the financial collapse and Great Depression in 1929. What happened in What are the similarities with the current year, but according to Musk, they are numerous.
Stock market beers and doomsday congregants gathered and shared memes beneath Musk’s tweet.
Cathy Wood said on Wednesday that Elon Musk can turn Twitter into a super app now that he has bought the company. Wood said Twitter could one day look like WeChat Pay, a digital payment service from Chinese messaging app WeChat. The super apps work as an all-in-one platform that caters to a wide range of user needs related to instant messaging, banking and travel.
Arch Invest founder Cathy Wood thinks Elon Musk may be on to something with his vision for Twitter. He’s thinking of a super app like WeChat Pay, Wood said Wednesday at the Web Summit technology conference in Lisbon, Portugal.
Wood was alluding to the advanced installment administration of the Chinese informing application WeChat. It is many times utilized in China for things like texting, web-based entertainment, and installments. WeChat is known as the model of the peculiarity known as super applications. These applications carry on like across the board stages that meet clients’ texting, banking and different necessities.
Tesla Chief Musk has previously indicated plans to make Twitter a super application. Last month Wood said he tweeted that purchasing Twitter was “a gas pedal to make X, everything an application.” Recollect when Musk entered the installments business? At the point when he began, he offered his organization to PayPal. He and Twitter fellow benefactor Jack Dorsey are cooperating on my thought process could transform into a super application.
Twitter could look like a digital wallet in the future, Wood said: So you do all your banking there, maybe they’re doing something with the Cash app developed by Dorsey’s fintech firm Square Online. Payment app you do all your shopping there you get your loan there it’s your bank branch in your pocket he said I think they can do that.
Tesla bull Wood said that Ark has put resources into Twitter as a component of Musk’s $44 billion arrangement to take the organization private. Musk genuinely confides in vertical joining. She said adding Twitter would be an amazing vertical blend.
He has already designed and manufactured the ultimate mobile device, the Internet on Wheels, which is called the Tesla Car. Yet Musk’s acquisition of the firm is the subject of significant scrutiny by regulators and civil rights activists who fear it could allow harmful content to flourish.
Addressing these concerns, Wood said that Twitter’s dark side was in its opacity around content moderation decisions. He added that he figures Musk can transform Twitter into open-source programming where the code can be inspected, adjusted, and shared by the general population.
Some of tech’s biggest losers this year, including Elon Musk and Cathy Wood, haven’t been the poster children of successful investing lately. But with tech stocks in particular starting to get pretty cheap, investors may want to heed at least some of his advice.
Both Mr Musk and Ms Wood have openly faulted increasing financing costs for the horrible showing of their resources. Ms Wood published an open letter to the Federal Reserve in October warning that the central bank’s aggressive stance raised the risk of a deflationary movement. Mr. Musk correspondingly called the Fed the genuine issue. As returns on risk-free Treasuries rise, he explained in another tweet, the value of owning riskier equity assets falls.
The poor performance of Ms Wood’s exchange-traded funds and Mr Musk’s biggest asset cannot be blamed entirely on the Fed. The ARK Innovations ETF has fallen 69% this year, while Tesla stock is down 68%.
But the incident narrated by these tech personality has recently turned out to be true. A report published last year by Nasdaq Investment Intelligence on the interest-rate sensitivity of major indices showed a negative correlation between the average yield change of the Nasdaq-100 and 10-year Treasury notes in 2021 – a dynamic that is changing. This fits with what is taught in business schools and accepted on Wall Street: The valuation of growth stocks is tied to their future earnings potential, and as yields rise, those future earnings The present value of the cost of Rs should be lower.
Of course, reality hasn’t always been so simple. Nasdaq Investment Intelligence actually found that over the past 30 years, the performance of the Nasdaq-100 has been positively correlated with the yield on 10-year Treasuries, except when rates reach higher limits and keep rising. This may be because at the beginning of rate-hike cycles, the economy is performing strong. This shows that investors need to keep an eye on several macroeconomic factors, not just rates.
Even as we look forward to another year of potentially rising rates, some tech stocks are poised to end the year looking almost irrevocably cheap. Take Facebook owner Meta Platforms, whose shares are currently trading at just 14 times forward earnings, compared to nearly 29 times forward earnings over the past 9½ years. Over the past few months, Meta has taken steps to recover its business in a declining advertising environment, cutting its workforce by 13% and cutting back on noncore projects. Indeed, JPMorgan downgraded shares of Meta to overweight earlier this month, citing more favorable risk/reward and valuations.
The same is true for stocks like Amazon.com, Airbnb and DoorDash, all of which have traded flat this year despite underperforming the broader index and on top of their respective pandemic growth overall. But there has also been an increase. stopped
To tech enthusiasts, these types of sales may sound like a New York City penthouse for $5 million or an Hermès Birkin bag selling for a “mere” thousand bucks.
Just because something is cheap doesn’t mean it’s a good investment. If the Fed holds off on raising rates next year, as market watchers expect, tech stocks will rally. But unlike Mr. Musk and Ms. Wood, it’s not the only thing weighing in on the field.
Meta said in October that it expected the biggest decline in year-over-year revenue in the fourth quarter, with a drop of about 7% at the midpoint of its outlook. The company was clear that some of its performance “is going to be dependent on the broader economy.” Notably, the company stressed that a fall in foreign exchange rates would weigh on its top line.
Amazon was equally clear on its third-quarter conference call that the macroeconomic environment will play a big role in its fourth-quarter earnings. The company highlighted “rampant inflation” and the rising cost of fuel and energy, prompting consumers to lose their purchasing power and corporations to reconsider their technology and advertising spending.