Welcome back from the long weekend.
Today we’re going over how to keep your footing in times of market volatility, and then breaking down some recent labor and jobs data — how many people quit and the US states with the best numbers.
Let’s get started.
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1. Prominent investors are highlighting mistakes to avoid in today’s market. Famed stock-picker and ARK Invest head Cathie Wood said it’s a mistake for investors to pile into index funds based on past successes instead of betting on innovative companies.
“We have, I think, one of the most massive misallocations of capital in the history of mankind,” Wood said in a CNBC interview. “You have investors investing in the past.”
In her eyes, it’s riskier to own benchmarks than ARK’s funds.
“Those benchmarks are where the risk is, not our portfolios,” Wood said. Ark’s flagship ETF saw a 58% decline from its record high in 2021.
Jeremy Grantham’s GMO also broke down how investors should approach a volatile stock market sell-off. “None of us are immune to making investment mistakes,” wrote Ben Inker in his quarterly letter.
He highlighted the four common mistakes to avoid at all costs, and noted that investors shouldn’t place excessive faith on certain assets that performed well during the pandemic, or have unrealistic expectations of returns.
“Investing does seem to be an area where there are lessons that usually cannot be taught, only painfully learned on one’s own,” he said.
FTX
In other news:
2. Dow futures fell almost 500 points after Putin ordered Russian troops into Ukraine. US and global stocks have since retraced some of that earlier sharp selloff. Check out what the markets are doing now.
3. On deck today: Coca-Cola, Jack in the Box, and Toll Brothers, all reporting.
4. Young real estate investors explained why they prioritized buying a home over paying down student loans. “It was a matter of where my money was better spent,” said one person with $15,000 in college debt. Here’s how two recent grads saved up to buy their first properties.
5. The S&P 500 will surge 20% by year-end, according to a BMO strategist. Capital Markets’ Brain Belski isn’t buying the story that a recession is coming. He explained why US stocks are set to rally this year.
6. Sam Bankman Fried called for more crypto regulation in a new interview. The US, according to FTX’s billionaire founder, should step in and provide oversight rather than sitting on the sidelines. Two experts shared their predictions for what’s to come in 2022.
7. The US Department of Justice is launching a crypto task force. To step up its policing of digital assets, the National Cryptocurrency Enforcement Team will monitor crypto crimes and ransomware hacks, among other duties. The move follows a year that saw an 80% increase in crypto crimes.
8. A former Navy SEAL and ex-BlackRock exec explained why he’s leaving a 20-year Wall Street career to join a Cathie Wood-backed startup. 21Shares is relatively unknown in the US, but Kayle Watson is eager to start at the crypto company. He also laid out the four altcoins he’s buying for the long term.
9. A stock market veteran who works at a $4.2 billion asset manager gave his stock picks. The president of RNC Genter Capital Management is betting on high-dividend stocks during the current selloff. See which 13 companies he thinks are strong bets.
Madison Hoff/Insider, data from the Bureau of Labor Statistics
10. A lot of Americans quit their jobs in December. Quits remained elevated and job openings rose at the end of 2021. New data reveals which states saw the shortage ease, and which struggled most to fill openings. See the full report.
Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn.)
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