Peter Garnry has taken to calling the triumvirate of Tesla, Bitcoin, and technology-heavy ARK ETFs, a risk cluster. Garnry is the Head of Equity Strategy at Saxo Bank.
He believes “…the risk has gone up that this risk cluster could turn into an ugly forced selling dynamic causing pain in not only Tesla, Bitcoin, and Ark funds, but also US biotechnology stocks where Ark Invest is a major holder with high ownership in selected names.”
We’ve definitely seen some speculative excess come out of tech stocks and Bitcoin, but is the underlying bullishness still there or is this the beginning of something more damaging?
Image source: www.alliancebernstein.com
Build Me an ARK as Tsunami of Risk Could Come