Cathie Wood shuts down ARK Transparency ETF, which invests in the one hundred most transparent companies.
The ARK Transparency ETF (CTRU), launched in mid-December 2021, during peak central bank liquidity, when a TikToker model was making 200,000 USD selling her farts in a Jar, a clear sign of too much liquidity in the system. Indeed, investor psychology was in the late thrill stage as everybody was all leveraged to the eyeballs, thinking they would be the next crypto millionaire.
“The ARK Transparency ETF (CTRU), launched in mid-December 2021, during peak central bank liquidity”
WEALTH TRAINING COMPANY
So perhaps it comes as no surprise that Cathie Wood shutdown ARK Transparency ETF. After all, launching a fund when central bank liquidity is peaking and investors are in irrational exuberance is a bit like being on the precipice of a cliff looking down. With every buyer all in and leveraged, eventually buying momentum peaks, prices start trending down, and investor complacency gives way to panic as prices snowball into a depression.
Paradoxically, a depression is when businesses are launched, and investors make most of their money buying quality assets on the dollar, then selling them in the boom.
But Joe public buys in the boom and sells in the depression.
Cathie Wood shuts down ARK Transparency ETF comes as no surprise but what comes as a surprise is why would a professional Wall Street money manager act like Joe public.
The ARK Transparency ETF (CTRU) fund was once called “ARK’s version of ESG” by Bloomberg ETF expert Eric Balchunas.
ESG stands for Environmental, Social, and Governance. Investors are increasingly applying these non-financial factors as part of their analysis process.
“TikToker model was making 200,000 USD selling her farts in a Jar, a clear sign of too much liquidity in the system”
WEALTH TRAINING COMPANY
ESG was all the rage when the money was easy and households padded with stimulus cheques had a budget for discretionary spending.
But before the war in Ukraine energy and food were affordable. Ukraine’s flag blue and yellow symbolizes blue skies and vast lands of grain and has come to be known as the breadbasket of Europe. Moreover, its geographical position makes it a logistics energy pipe hub that connects western Europe with vast gas energy reserves, and its shipping ports now under the Russian sphere of influence facilitate the global trade of food commodities.
“Central banks’ battle with inflation, which entails asset sales, quantitative tightening, and rate hikes has wiped trillions of dollars off investments crashing the bubble of everything and making financial markets uninvestable for the first half of 2022” – Wealth Training Company
Cathie Wood shuts down ARK Transparency ETF as the war in Europe’s breadbasket and energy hub has triggered global cost-push inflation not seen in almost forty years, which has caused central banks to tighten aggressively
Most advanced economies are experiencing above nine percent inflation with political instability and social unrest back on the radar.
Central banks’ battle with inflation, which entails asset sales, quantitative tightening, and rate hikes has wiped trillions of dollars off investments crashing the bubble of everything and making financial markets uninvestable for the first half of 2022.
Bill Ackman shelved his SPAC deal returning four billion US dollars to investors so Cathie Wood shutdown ARK Transparency ETF is in good company
In the last few months, an Australian bank Volt, collapsed, crypto lender Celius filed for bankruptcy, US mortgage lenders went bankrupt. and approximately $9.1 trillion has been wiped off portfolios. It already feels like depression.
But fortune favors the brave, Cathie Wood shutdown ARK Transparency ETF, but maybe now would be the time to launch an ETF.
