“Expert” investor Cathie Wood, thought oil was going to $12.

    https://i.redd.it/m1no0p6xvdsg1.jpeg

    Posted by shaferman

    10 Comments

    1. Spez_is-a-nazi on

      That “analysis” is ludicrous. First even assuming every vehicle suddenly turned electric transportation is less than half of all oil use. And if it got that cheap basically no American producer could make money so that would take out a lot of supply, not to mention opec would never let it get anywhere near that low.

    2. A lot of people had this take back then. Shows a real lack of understanding systems combined with, in my opinion, listening to Elon Musk too much.

      Don’t get me wrong though, I had as many if not more incorrect opinions in 2020.

    3. Fading Woods has usually been a good strategy.

      Her fund makes big, illiquid bets in stocks with little earnings, often in smaller companies whose equity market can’t handle big inflows/outflows. Wood’s ARKK fund gets redemptions, and she’s forced to sell holdings at a loss.

      I contemplated shorting a basket of stocks her ARKK fund had high ownership stakes in, mostly biotechs, earlier in the year. See CRSP, TWST, BEAM, ACHR performance over the past month. I didn’t, and opted for the oil+ag inputs strategy that’s worked since November. But it would have been easy money.

      As for oil, the marginal barrel (US shale oil) has a $65 break even. We’d have to see a lot of demand destruction (and places like the Permian abandoned) before that cost of supply falls markedly.

    4. Cathie Wood holds the record for most investor wealth lost out of any investment manager ever lol

      Something like $10-20b of value destroyed

    5. She’s right when the government prints like it is going out of style and her choices don’t need to make a profit.

    6. WhoisthisRDDT on

      To be fair, that was speculated in 2020. She could have been close, had the clean/alternative energy not been decimated. Oil price had been going down until recently. No one expected to see what’s happening right now.

    7. Can you imagine where we’d be in 5 yrs without trump. We’d be cranking out battery factories

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