Jim Cramer Says ‘Ark Invest Phenomenon’ Seems To Be Over For Now

CNBC’s Jim Cramer said on Friday that Ark Invest’s stock market influence appeared to be waning – at least for now.

Ark Invest’s family of exchange-traded funds was among the top performers on Wall Street last year, but did not fare well in 2021, as investors turned away from high-growth stocks to look to the economic recovery.

the “Crazy money” The host said that as funds managed by star fund manager Cathie Wood’s company struggled, the amount of cash outflows began to rise. This has implications for stocks that are part of ETFs, Cramer said.

“It seems pretty clear that the Ark Invest phenomenon is no longer in play,” Cramer said. “We don’t see any major releases here, but the era of Cathie Wood supporting these stocks with her own buying bazooka, I think it looks like it’s over.”

The reverse was true last year when investors started noticing the performance of the Wood family of funds, Cramer said, leading the company to see a massive wave of influx and new firepower to be deployed on the market. market.

Cramer noted that Ark’s flagship ARK Innovation ETFs have started to perform better recently, as growth stocks have returned to favor. Indeed, the fund is up around 2.4% over the last 5 days, while the S&P 500, in comparison, is down 1.9%.

ARK Innovation too increased by 6% between June 7 and June 11.

“Here’s the gist: When you look at fund flows, Ark Invest is no longer supporting turbocharged growth stocks, which makes their recent rebound much bigger for me,” Cramer said.

“Maybe if this group continues to climb, Cathie Wood can get her bazooka back, but by then the ‘Woodstocks’ will rise or fall on their own. “

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