Shades Of 2000 And 2008

Still from a r/WallStreetBets Family Guy meme video illustrating the declines suffered by growth names in Cathie Wood's ARK ETFs. As growth names have stumbled this year, Wood's flagship Ark Innovation Fund (ARKK) has been a bellwether. 

Tim Knight Was Right

Growth names are stumbling, bitcoin is crabbing, former market leaders are getting downgraded, and inflation is heating up. Some observers see shades of the spring of 2000 or the summer of 2008 in this. More on that below, but first a quick follow up on Slope of Hope founder Tim Knight's prediction about the weekend drop in Doge extending to stocks. 

In our previous post (In Case Elon Musk's SNL Effect Extends To Stocks), we included this prediction tweet from Tim Knight:

We included this video using our app to find optimal hedges on Tesla (TSLA) in light of Tim's prediction. 

Video Length: 00:03:27

As it happened, Tesla was down another 6.44% on Monday on a red day overall for the markets. At the same time, as Sentiment Trader pointed out, 44 S&P 500 stocks made new 52-week highs. 

Good warning there about the need for humility. With that in mind, let's consider a couple of inauspicious possible analogs. 

Shades Of The Summer Of 2008

A pseudonymous observer highlighted the recent spike in gas prices, reminding us how they helped trigger the global financial crisis in 2008. 

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