Market Musings 160923
The hidden cost of fashion

Following the latest fad can be bad for your financial health


  • Pandemic lessons: The rise and fall of ARK

  • Collapse on online retail stocks, food delivery, connected fitness, fake meat

  • Back to the old economy: Retail, Professional Media, Oil & Gas, Latin America

Tackling the obesity epidemic

In today’s podcast, Edmund Shing, Chief Investment Officer of BNP Paribas Wealth Management, discusses the causes and consequences of obesity and its treatments.

  • Factors causing obesity

  • Related health conditions

  • So-called wonder drugs on the market

  • How to invest in this essential medical/health segment?

On Fads and Fashions: a Health Warning

The global COVID-19 pandemic has proved a very interesting case study in financial bubbles and busts. Of course, the widespread economic shutdown triggered by lockdowns, and the subsequent economic stimulus responses from governments and central banks were unprecedented in size.

We also saw the inflation of a number of investment bubbles, most notably centred around technology linked to the necessity of staying and working from home during the pandemic. Of course, there have been structural changes to our daily lives as a result of the pandemic, including a much higher percentage of white collar work which is now done on a mixed or work-from-home basis today.

Perhaps the best illustration of the pandemic-linked technology bubble and subsequent bust (echoing to some extent the 2000 technology bubble) can be found in the incredible rise and fall of the house of ARK - the ETF issuer led by Cathie Woods that championed all manner of new, high-growth technology stocks and themes.

The rise and fall of the ARK



Today, the ARK Innovation ETF sits some way below its pre-pandemic levels, 73% below its early 2021 peak level.

One of the stocks ARK favoured was Peloton, who offered us the Peloton bike with connected fitness classes. This online fitness fashion seems to have faded in popularity once reopening occurred - Peloton stock has lost 97% from peak and shows little sign of recovering.

Pandemic-era: The Peloton fitness fad



Similar can be said for food delivery stocks such as…

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