Feb 28, 2022
David Trainer, president at New Constructs -- a data firm that analyzes funds and stocks -- says that the hugely popular ARK Innovation Fund is fooling investors into believing that innovation itself is an investment strategy or asset class, and he notes that many of the holdings are simply early entrants to an industry with little or no competitive edge. That's why a number of the fund's biggest and best-known holdings have been in the Danger Zone, which is where he puts the ETF itself this week, noting that while ARK Innovation has lost about half of its value since the start of 2021, he believes it could fall another 70 percent from here. Also on the show, Chuck talks about how long geopolitical events typically effect the market, Giorgio Caputo, senior fund manager at J.O. Hambro Capital Management, discusses how investors can get through the interest rate and inflation transitions and how to invest once the higher-rate environment arrives, and Adam Coons, portfolio manager at Winthrop Capital Management, talks ETFs in the Market Call.