This Is the Next Bubble to Pop

Have you forgotten about Cathie Wood? Wood's flagship ARK Innovation Fund (ARKK) is one of the poster children of the current "tech wreck." It has wiped out billions of dollars in investor capital since early 2021... [Chaikin PowerFeed]( Editor's note: We've turned the Chaikin PowerFeed over to Dan Ferris... Dan is an editor at our corporate affiliate Stansberry Research. He has shared his market insights with thousands of newsletter readers over the past two-plus decades. Right now, [Dan is as "bearish" as they come](. And as he'll explain today and tomorrow, [Ark Investment Management founder Cathie Wood]( is a big reason why... This Is the Next Bubble to Pop By Dan Ferris, editor, Stansberry Research Have you forgotten about Cathie Wood? Wood's flagship ARK Innovation Fund (ARKK) is one of the poster children of the current "tech wreck." It has wiped out billions of dollars in investor capital since early 2021... In February 2021, this exchange-traded fund peaked at more than $156 per share. Now, in October 2022, it's trading for around $37 per share. That's a 76% loss in just 20 months. You might think losses like that would make someone fade into the background. But that's not how Wood operates... Through all the losses, she keeps pounding the table about the incredible opportunities in the tech space. She fails to realize that most of the holdings in ARKK are pure garbage. And now, Wood is at it again with a new idea... Recommended Links: [** Tonight's Important Warning **]( He successfully predicted the fall of Lehman Brothers... the Bitcoin crash... and the top of the Nasdaq. Now, Dan Ferris says the biggest mega-bubble in stock market history is about to burst... and you need to prepare immediately. [Click here for the full details, then tune in tonight](. [Major Patent Alert: October 23, 2022]( A major announcement on that day could force a wave of money into THREE companies. Their exclusive patents could soon be worth up to $150 billion... and lead to multiple gains up to 400%+ no matter what's happening in the market. [Click here for breaking story](. In late September, Wood launched the new ARK Venture Fund... The fund's purpose is to allow anyone – including the smallest (least experienced) investors – to invest in illiquid private companies. Its prospectus says it will be 20% to 85% invested in private companies at any time. The rest will be in publicly traded companies. Importantly, the ARK Venture Fund is an "interval fund"... Interval funds get their name from the fact that once you put your money in, you're only allowed to take it out at predetermined intervals. At those points, the fund's managers – in this case, Wood's ARK Investment Management – offer to buy a portion of your shares at the current net asset value. ARK Investment Management will offer to repurchase ARK Venture Fund shares once each quarter. That means investors will be allowed to take their money out four times per year. But the thing is... you can't get your money back all at once. When you want it back, you'll likely only be allowed to take out 5% per quarter. So if you want everything back, it will take 20 quarters to get it all out. That's five years. And five years is the most optimistic scenario... The investment horizon is listed as five to 10 years. So you know ARK Investment Management intends to keep it longer than five years, at least on average. The company says it will conduct offers to repurchase between 5% and 25% of investors' shares every quarter. But 5% is likely the best you'll do – and even that isn't so likely... That's pretty clear from the first page of the prospectus. Take a look (emphasis added)... In connection with any given repurchase offer, it is expected that the Fund will offer to repurchase only the minimum amount of 5% of its outstanding Shares. It is also possible that a repurchase offer may be oversubscribed, with the result that shareholders may only be able to have a portion of their Shares repurchased. In other words... if too many people want their money back all at once, you won't even get your 5%. You might not even get 1% if the offering is oversubscribed enough. You can decide whether or not to accept ARK Investment Management's quarterly offer. But aside from these minimal parameters, management decides when and how much of your money you get back. So let's say the private companies within this shiny new ARK Venture Fund finally admit their assets are imploding as fast as every other tech stock on the planet... Do you think the quarterly redemptions will be oversubscribed or undersubscribed? Said another way... do you think the great unwashed who put their money in before watching it get cut in half in a quarter or two will rush to get as much of it back as possible at the end of every quarter? Or will they all get together, act rationally, and not panic? We don't need a game of make-believe to know the answer to those questions. Read [the first page of the ARK Venture Fund prospectus]( and tell me it's not a roach motel... You can check in whenever you want. But when you try to check out once every quarter, you can't really leave. You're stuck. And you're surrounded by piles and piles of garbage. After all, venture capital ("VC") asset values are already imploding... But most folks probably haven't noticed. That's due in large part to the quirks of private-company investing and the fact that folks have been calling for the tech VC bubble to burst for more than a decade. Heck, all the way back in November 2011, early Facebook investor Sean Parker said of the VC frenzy... I don't know how many more years of this we have – maybe it's a year, a year or two, max. But honestly, every asset on Earth is imploding right now. Is it really possible that some of the most speculative, risky, unlikely-to-succeed investments aren't also in serious trouble? Tomorrow, I'll detail how we know the VC bubble is closer to unwinding than most investors expect. And I'll explain exactly what it means for everyday investors like us. Good investing, Dan Ferris Editor's note: About 12 hours from now, Dan will share bad news for 99% of investors... In short, he believes a major market event is about to take place that will take most folks by surprise. And even worse, it could ruin millions of Americans' retirement accounts. But the good news is... you can be in the 1%. Roughly 359,000 folks have already reserved their spots for Dan's urgent online briefing. It will start at 8 p.m. Eastern time. And it's FREE to join. [Click here for the full details](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +1.13% 3 21 6 S&P 500 +1.13% 66 296 134 Nasdaq +0.79% 11 59 30 Small Caps +1.18% 414 979 470 Bonds +0.23% Industrials +2.41% 12 45 15 — According to the Chaikin Power Bar, Large Cap stocks are more Bearish than Small Cap stocks. Major indexes remain all bearish. * * * * Top Movers Gainers [rating] CCL +11.14% [rating] LMT +8.79% [rating] NCLH +8.57% [rating] RCL +7.76% [rating] NOC +6.68% Losers [rating] MRNA -3.71% [rating] HAS -2.88% [rating] DXCM -2.81% [rating] TFC -2.39% [rating] KMX -2.16% * * * * Earnings Report Reporting Today Rating Before Open After Close MTB GL ABT, ELV, NDAQ, NTRS, NVR, PG, TRV CFG, CMA, IBM, KMI, LRCX, PPG BKR, MKTX CCI, EFX, LVS, TSLA No earnings reporting today. Earnings Surprises [rating] NFLX Netflix, Inc. Q3 $3.10 Beat by $0.93 [rating] GS The Goldman Sachs Group, Inc. Q3 $8.25 Beat by $0.74 [rating] ISRG Intuitive Surgical, Inc. Q3 $1.19 Beat by $0.07 [rating] JBHT J.B. Hunt Transport Services, Inc. Q3 $2.57 Beat by $0.11 [rating] JNJ Johnson & Johnson Q3 $2.55 Beat by $0.06 * * * * Sector Tracker Sector movement over the last 5 days Financial +6.39% Communication +4.15% Information Technology +3.81% Industrials +3.79% Health Care +3.34% Materials +3.16% Energy +3.16% Real Estate +2.99% Discretionary +2.93% Staples +2.76% Utilities +1.52% * * * * Industry Focus Capital Markets Services 8 48 8 Over the past 6 months, the Capital Markets subsector (KCE) has outperformed the S&P 500 by +2.34%. Its Power Bar ratio which measures future potential is Neutral, with an equal number of Bullish and Bearish stocks. It is currently ranked #9 of 21 subsectors. Indicative Stocks [rating] COIN Coinbase Global, Inc [rating] WETF WisdomTree Investmen [rating] MCO Moody's Corporation * * * * You have received this e-mail as part of your subscription to PowerFeed. 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