Welcome to 10 Things Before the Opening Bell.
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1. Wall Street is still keeping tabs on retail traders. It's been a year since the GameStop fiasco that kicked off the year of meme stocks, and institutional investors remain wary of the power of retail traders. Hedge fund Melvin Capital still hasn't recovered from the ordeal — it finished 2021 down 42% after trying to short Gamestop.
Everyday investors used to be alone in organizing across online forums like Reddit's WallStreetBets. But some trading desks have begun to track Twitter and Reddit sentiment in an effort to stay abreast of trends, with some pros even copying the moves of amateurs.
But not star stock-picker Cathie Wood — she said meme stocks aren't Ark Invest's thing, though she doesn't fault retail traders for going after them.
Wood's focus lies elsewhere. She advocates for democratizing investment in innovation and restoring confidence in markets. By keeping its strategy transparent, Wood explained, Ark aims to keep regular investors "on the right side of change."
Meanwhile, despite all of Ark's bullishness on new-age tech companies, DataTrek is seeing signs of another dot-com bubble. The firm warned investors against buying the dip in disruptive innovation stocks: "The narrative has changed to old-school cyclicals."
2. Stocks look set to dive at the opening bell. Dow futures plunged in European trade earlier, as rising bond yields and oil at seven-year highs fan fears of inflation.Take a look at what's happening today.
3. This is how to invest $10,000 right now, according to six financial experts. Wall Street pros expect it to be tougher to make money in this year's market. From stocks and crypto to ETFs, experts shared where they would put their money for 2022.
4. Big earnings on the docket: Bank of America, Charles Schwab, and Goldman Sachs, all reporting.
5. The recent bitcoin slump could be the start of a "crypto winter," according to UBS. The firm isn't alone in thinking prices could crash as the crypto bubble pops. Invesco said bitcoin could tumble below $30,000 this year.
6. Warren Buffett missed out on $10 billion in gains by dumping Wells Fargo stock. Buffett's Berkshire Hathaway also left $5 billion on the table by exiting JPMorgan and Goldman Sachs back in 2020. But the billionaire's been critical of Wells Fargo's management — so he's unlikely to regret shedding the stock.
7. Investor Bill Ackman said the Federal Reserve needs a "shock and awe" rate hike. The Fed is losing its battle against inflation, and investors expect at least four rate hikes this year. To Ackman, a bigger rate hike will restore its credibility with markets.
8. This sportswear startup's line of luxury jacket NFTs sold out in minutes. ASRV released digital tokens as part of a new clothing line and its CEO is betting big on Web3 — he's already scouted out virtual land in the metaverse for a virtual store.
9. A 25-year-old crypto founder who bought tons of solana at around $0.33 is trying to build the "Apple of finance." Yubo Ruan also invested in polkadot when it was priced below $1. He broke down his three-part strategy for how he identifies winning altcoins early.
10. The CEO of an $800 property investing platform expects double-digit growth in five specific markets this year. Among her favorite picks for 2022, RealtyMogul's Jilliene Helman likes Nashville and Miami. See her full list here — and how investors can get started with $5,000 to hedge against inflation.
Compiled by Phil Rosen. Feedback? Email [email protected] or tweet @philrosenn.
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