Jim Cramer has never been afraid to utilise buzzers and bells to spice up the somewhat esoteric world of finance.
However, the host of CNBC’s Mad Money drew the attention of the Twitterverse to this newest trick.
The ARK Innovation ETF ARKK, -3.91 %, has been plummeting. Cathie Wood’s flagship fund has plummeted 58 % since its top in February, with a 30 % decrease in 2022 alone, as her high-growth bets shrink in the face of fears of Federal Reserve tightening starting as early as March. However, there is an ETF called the Tuttle Capital Short Innovation ETF, with the ticker SARK SARK, +3.76 %, that attempts to create the reverse of what the ARK Innovation ETF accomplishes, and it’s up 38 percent this year and 61 percent since November.
So it’s basically a foregone conclusion what Cramer will do next.
If the video doesn’t load, it’s Cramer pouring a bottle of Cutty Sark whisky over a Noah’s Ark, complete with small animal cutouts bearing the ticker symbols of the fund’s assets, such as Robinhood Markets HOOD, -6.45 %, and Teladoc Health TDOC, -3.08 %.
“If you think [Fed Chairman] Jay Powell intends to kill the economy, now you know how to bet.” “You pour the sark over the ark and bet that everyone drowns and no one survives,” Cramer explained. Here’s where you can see the entire piece.
Close observers noted that in February, Cramer referred to Wood as a genius.
The more complicated debate is whether Powell would halt his inflation-fighting rate hikes if the economy were to fall apart, and how high-growth equities would perform in such a scenario. The bond market is betting on that with the yield curve flattening – the spread between 10-year TMUBMUSD10Y, 1.838 % and 2-year TMUBMUSD02Y, 1.220 percent rates is the smallest in more than a year. It’s anyone’s judgment if the Fed terminating the rate-hike cycle early would subsequently propel tech stocks higher, but it’s food for thought for anyone who thinks Cramer is missing the boat.