Cathie Wood Declares the Nasdaq Dead... And She Isn't Wrong

Cathie Wood is at it again... Bloomberg interviewed the ARK Investment Management founder and CEO last Friday. [Chaikin PowerFeed]( Cathie Wood Declares the Nasdaq Dead... And She Isn't Wrong By Marc Gerstein, director of research, Chaikin Analytics Cathie Wood is at it again... Bloomberg interviewed the ARK Investment Management founder and CEO last Friday. And during the conversation, she declared... "We are the new Nasdaq." It's a bold statement. It implies that the industry's most trusted tech-tracking index is dead. And the thing is... Wood is on to something. Simply put, Nasdaq 100 Index mainstays like Apple (AAPL) and Alphabet (GOOGL) led the way in growth and innovation for a long time. But now, they're no longer growth monsters. Meanwhile, Wood's flagship ARK Innovation Fund (ARKK) represents the next generation of tech innovation. It includes companies like Tesla (TSLA), Spotify Technology (SPOT), Block (SQ), and Zoom Video Communications (ZM). And like them or not, these businesses now offer more growth potential than the old guard. But as I'll explain, that still doesn't mean ARKK is the answer for investors today... Recommended Links: [** Huge Power Gauge Announcement **]( If you've been watching stocks slip this week, and wondering: "Is this it?" It's time to get ready. Marc Chaikin just stepped forward with an urgent prediction for U.S. stocks in 2023. It involves the recent volatility... a surprising shift in the Power Gauge... and a rare investment that could 5X your money as a result, starting immediately. [Full details here](. [A Financial Fraud BIGGER Than FTX and Madoff?]( Man who called '08 crash reveals a financial fraud that could be BIGGER than FTX and Bernie Madoff combined... and could soon impact millions of Americans. [Click here for details](. In addition to Apple and Alphabet, the Nasdaq 100 also includes companies like Microsoft (MSFT), Amazon (AMZN), and Cisco Systems (CSCO). They're all established tech leaders. As a result, the Nasdaq 100 has been the industry benchmark for nearly 40 years. But the tech industry is evolving... Next-generation companies like Tesla, Spotify, Block, and Zoom are now making their marks. And they're changing the investment landscape... The old guard simply doesn't have the same juice anymore. Think about it... Do you think Apple will sell twice as many iPhones next year? Or do you think people will make twice as many Google searches next year? Innovative tech investors want growth. And folks can't rely on the Nasdaq 100 leaders to do that anymore. That's why many investors are getting behind Wood. They're looking for a new industrywide gauge for tech stocks... ARKK is a top contender – and perhaps justifiably. [As I've said before]( the exchange-traded fund ("ETF") is looking to the future. It focuses on "disruptive innovation" in areas like digital payments, video communication, electric vehicles ("EVs"), streaming services, and cloud computing. Just look at ARKK's top holding, Tesla... The electric-car maker accounts for about 10% of the ETF. (Tesla is also a top company in the Nasdaq 100.) Tesla is the global leader in EVs. It brought them to the market before mainstream companies like Ford Motor (F) and General Motors (GM) even considered the idea. So then, it comes down to how much growth investors expect from here... Will Tesla still dominate the EV space in 2040? And how long will it take for the overall EV market to achieve its full potential? We can't yet answer those questions. But right now, Wood is right in at least one way... It's clear that ARKK now provides more exposure to disruptive-innovation stocks than the Nasdaq 100. And collectively, these companies have a lot more growth potential. But that doesn't mean we should rush out and buy ARKK shares... Sure, ARKK can soar in a raging bull market. However, as we've seen over the past two years, it craters when times get tough. It's a lot more volatile than many folks can stomach. In other words, it's important to get the timing right. Currently, the Power Gauge ranks ARKK as "neutral" across the board. Take a look... [Chaikin PowerFeed] ARKK experienced a huge wipeout. And we're still waiting to see what its next leg looks like. So in the end, our takeaway is simple... The Nasdaq 100 isn't what it used to be. And the market is still searching for its next tech benchmark. Wood wants us to believe it's ARKK. And the ETF does offer potential in the years ahead. But for now, the Power Gauge isn't convinced. It's still flashing "neutral." So we'll follow its lead and remain cautious for the time being. Good investing, Marc Gerstein Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.62% 8 17 5 S&P 500 -1.10% 161 267 72 Nasdaq -1.78% 31 55 14 Small Caps -1.47% 575 1006 308 Bonds +0.48% — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain Bullish. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Information Technology +1.90% Communication +1.79% Financial +0.63% Industrials -0.24% Energy -0.67% Discretionary -0.88% Real Estate -1.12% Health Care -1.18% Staples -2.30% Materials -2.68% Utilities -2.75% * * * * Industry Focus Retail Services 24 55 15 Over the past 6 months, the Retail subsector (XRT) has outperformed the S&P 500 by +3.03%. Its Power Bar ratio, which measures future potential, is Strong, with more Bullish than Bearish stocks. It is currently ranked #15 of 21 subsectors and has moved down 2 slots over the past week. Top Stocks [rating] ABG Asbury Automotive Gr [rating] BKE The Buckle, Inc. [rating] FL Foot Locker, Inc. * * * * Top Movers Gainers [rating] FTNT +10.90% [rating] CME +5.42% [rating] FOXA +4.38% [rating] CVS +3.47% [rating] HUM +2.75% Losers [rating] JKHY -9.32% [rating] ILMN -7.99% [rating] GOOGL -7.68% [rating] PAYC -6.77% [rating] EMR -5.69% * * * * Earnings Report Reporting Today Rating Before Open After Close IPG EXPE, MHK, MTD ABBV, HLT, KIM, MAS, PEP, RL, SEE, SPGI, TPR, WTW DXCM, HII, MSI, NWSA, REG, VRSN, VTR BAX, DUK EQR No earnings reporting today. Earnings Surprises [rating] UBER Uber Technologies, Inc. Q4 $0.57 Beat by $0.55 [rating] DIS The Walt Disney Company Q1 $0.99 Beat by $0.20 [rating] EMR Emerson Electric Co. Q1 $0.78 Missed by $-0.09 [rating] ORLY O'Reilly Automotive, Inc. Q4 $8.37 Beat by $0.64 [rating] CVS CVS Health Corporation Q3 $2.15 Beat by $0.16 * * * * You have received this e-mail as part of your subscription to PowerFeed. 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