What investors have been fretting about finally happened: Russia invaded Ukraine Wednesday night. Bears have been correct in saying that we won’t see even an intermediate bottom until there is real fear – and we haven’t seen it yet. Well, guess what? We’re going to see at the open Thursday morning!
As I write (4am EST), S&P Futures are -2% and NASDAQ Futures -2.5%. If these hold, the NASDAQ will have erased ALL of its gains since the beginning of 2021 and be down 20% from its November peak. Combined with the fact that similar post-WWII geopolitcal events have been buying opportunities the correct move IMO is to BUY THE INVASION.
My security of choice for doing so is Cathie Wood’s formerly loved – now hated – Ark Innovation ETF (ARKK). ARKK is poised to open below $60 Thursday morning which is the pre-pandemic high from two years ago. In other words, ARKK will be down more than 60% from its February 2021 high at the open and have erased ALL of its pandemic gains.
If you want to be more conservative, QQQ is a fine option. At $320, it will be down 20% from its November high and have just about erased ALL of its gains since the beginning of 2021.
This is blood in the streets…. literally.