The 'great rotation' is finally showing some legs. It's unclear if investors will follow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2025
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Source: CNBC
Market Trends: In January, the stock market showed positive movement with ten of the eleven S&P sectors gaining, particularly in health care, energy, financials, and industrials, while technology experienced a slight decline. However, investor inflows remain heavily concentrated in technology, indicating a reluctance to diversify into other sectors.
Investor Behavior: Many investors continue to favor technology stocks due to past performance, exhibiting biases such as recency bias and gambler's fallacy, which hinder their willingness to explore investments outside of tech despite significant declines in funds like Cathie Wood's ARK Innovation ETF.
Analyst Views on ARKK
Wall Street analysts forecast ARKK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARKK is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 80.290
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Current: 80.290
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
