From Whitney Tilson: The markets are off to a rocky start this...

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    From Whitney Tilson:

    The markets are off to a rocky start this year, with the tech-heavy Nasdaq Composite Index down around 10% year to date and the Dow Jones Industrial Average and S&P 500 Index down roughly half that, as you can see in this chart:
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    But the experience for the average investor is much worse, however, as the broad-based indexes mask the carnage in some areas – such as profitless, high-growth stocks. Cathie Woods' ARK Innovation Fund (ARKK), which is a good proxy for these stocks, is down 53% from its peak just under a year ago, as you can see in this chart:
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    You can also see the underlying weakness in these two clever charts in this Wall Street Journal article, Giant Stock Swings Kick Off 2022. The first shows the big surge over the past couple of months in stocks hitting 52-week lows each day:
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    And the second shows how much each stock is below its 52-week high, by market cap and sector:
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    You can see how a few mega-cap stocks like Apple (AAPL), Alphabet (GOOGL), and Microsoft (MSFT) are only down 5% to 10% from their all-time highs, but many smaller stocks are down 20% or more.
 
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