Katharine Wood adds tesla to stock market

2022-07-05 0 By

In 2022, the U.S. stock market plunged to the start of a pessimistic mood.Statistics show that the Forbes American rich list of the top ten billionaires in addition to Buffett, a positive increase in the assets of the remaining nine billionaires more or less have shrunk.In the face of this complex situation, Goldman sachs recommends buying defensive assets and forecasts a future rise in gold prices from $2,000 to $2,150.On the one hand, the market is full of worries about the future of U.S. stocks. On the other hand, some investors are quite optimistic that the market will stabilize after the holiday season.So is the stock market headed for a big drop?Could this be the end of the tech bull market?In fact, at the beginning of 2022, affected by the expected interest rate hike, American technology stocks have fallen to varying degrees, among which the most obvious decline is tesla, the leader of new energy vehicles.On January 27, Tesla disclosed its financial results for the fourth quarter of 2021, which showed that for the full year of 2021, Tesla achieved revenue of 53.823 billion DOLLARS, up 71% year on year.Net profit was $5.519 billion, up 665 percent year on year.This is tesla’s second consecutive year of profit.Despite this, Tesla’s stock price dropped 11.55% on January 27, and its market value also fell below the two marks of $1 trillion and $900 billion in a row.It wasn’t until January 28 that Tesla’s shares recovered and its market cap returned to above the $900 billion mark.According to tesla’s fourth-quarter earnings report, Tesla’s revenue in the fourth quarter of 2021 was 17.72 billion DOLLARS, up 65% year on year;Net profit was $2.321 billion, up 760% year on year, indicating that its growth rate in the fourth quarter is still higher than that in the first three quarters, and the growth rate shows no slowing trend.Tesla sees good financial numbers as proof that electric cars have a broader market than gas-powered ones, and that there is no doubt about the profitability of electric car companies.In spite of this, the market is still not reassured, though tesla shares jumped 10.68% on January 31st, but at present, tesla, or America’s tech crisis has not lifted, reasons are as follows: first, the federal reserve to raise interest rates is a foregone conclusion, and the extent of future increases in interest rates is likely to exceed market expectations, the stock is bound to be affected;Second, with the end of the global pandemic, some of the growth in tech stocks such as Netflix will end, and tech stocks will return to normal, so a correction is inevitable.Third, in the past two years, some technology stocks have risen several times without significant improvement in fundamentals, which means that the current US technology stocks have accumulated certain risks.Fourth, the global risk aversion has been heating up. The capital represented by Warren Buffett has recorded a record high in cash holdings for five consecutive years, which also explains some problems.Of course, some institutions believe that the current is a correction, the STRUCTURE of the BULL market will not change.On Jan. 31, Marko Kolanovic, chief equity strategist at jpmorgan Chase & Co., said an expected rate hike by the Federal Reserve later this year won’t end the stock market rally.On February 1, The “Wooden sister” said she was firmly bullish on Tesla, despite the fact that the national Highway Traffic Safety Administration (NHTSA) recalled 53,822 vehicles in the US.Not only that, but on Jan. 27, Ms. Wood’s fund bought 33,482 shares of Tesla.On January 31, Mu Jie’s Ark Innovation ETF and Ark Next Generation Internet ETF bought Tesla shares again.Another fund, Ark Automation & Robotics ETF, also has a large stake in Tesla.In general, I believe that although the US stock market has rebounded to some extent, in the long run, the decline trend of the US stock market has not changed, and the accumulated risks have not been released after the rise of the past few years. Therefore, I think it is highly likely that the US stock market will fall sharply in 2022.