I'm always watching ARKK as gauge of growth stocks in general. ARKK is now back to it's 1 year range from 2018. I see the red box as covid excess that was a once in a life time event. Yields have now risen back to 2018 levels (10y @ 3%) so much of the excess has been flushed out. With this in mind we are getting close to a point where it may be safe to start looking at select growth names again.
I disagree. ARKK, like the entire growth sector is dependent on low interest rates, not high yields. Volume also is saying that the bottom hasn't been reached. Don't catch knives when you don't have to, it eats through capital faster than a trader with an eight ball.
WadeYendall
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@SloppySeconds, My post said I think we are getting close to a point where select growth names will become interesting again. So no knife catching planned. Very true that growth suffers under rising interest rates, but its worth noting that the 10y yield moved in a wide range between 1.5 - 4 % from 2008 to 2020. If rates can stabilize within that range growth names become interesting. Above 4% the entire thesis goes in the garbage. Here a long term chart I posted earlier of the 10year yields.