The “correction”

Even after the recent sell-off, markets and technology stocks in particular are still up significantly from two years ago. 

The “correction” is aptly named: valuations of some of these companies got out of hand relative to their underlying earnings.

A minor fall will add some needed discipline to the market, reminding investors that share prices can go both ways

FT Editorial 21 January 2022

https://www.ft.com/content/40c18871-ec98-48f7-bd43-96eaa26d6108

 “Correction”
The standard definition that a “correction” in an index is any fall from peak to trough of 10% or more. I have no idea where this definition comes from, and I don’t think it’s of any use. 

https://englundmacro.blogspot.com/2022/01/correction.html

 
    
Cathie Wood’s flagship Ark fund is on the cusp of being overtaken by Warren Buffett in the post-pandemic performance table, reflecting a dramatic shift in fortunes between the two prominent investors.

Ark Invest’s Innovation exchange traded fund — known by its stock market ticker ARKK — smashed most of its competitors in 2020, thanks to Wood’s aggressive bets on high-growth, disruptive companies like carmaker Tesla. 

That attracted billions of dollars from investors, lifting Ark Invest’s overall assets to a peak of $61bn early last year and helped make Wood the face of the bull run. 

Robin Wigglesworth FT 22 January 2022

https://www.ft.com/content/42bb6639-79a0-48da-9f21-01f33e7370f9

 

 Ark Invest founder’s flagship fund is down 27% this year

https://www.ft.com/content/303466b5-959f-4d14-b022-51ed2a2f446f