Cathie Wood’s flagship investment fund ARK InnovationThis week, she is at the center of tech selling and analysts believe that the stock prices behind her strategies will drop even more before they bottom.

On Thursday, the innovative-focused exchanged traded fund fell by more than 48% from its intraday record high of February 2021. It is still worse than March 2021, the lowest day of the pandemic markets rout.

ARK Innovation was the last flat of that day.

“This is worse than March of 2020 for that segment of the market,” said Josh Brown, co-founder and CEO of Ritholtz Wealth Management, on CNBC’s “Halftime Report.”“That’s remarkable to me.”

This week’s selling, which caused a drop of 9% in ETF shares this week is due to an increase in interest rates. Market growth that relies on low rates of borrowing for innovation investment is often punished by higher rates. Rates are rising, making their future earnings less attractive.

As rates spiked in the new year, the Federal Reserve indicated a quicker-than-expected tightening of the 10-year Treasury yield.

Stephen Weiss, Chief Investment Officer and managing Partner of Short Hills Capital Partners on CNBC’s Halftime Report, stated, “I still believe that the Cathie Wood shares are too low.” “There will continue to be pressure.”

“Inflation has arrived. “I think that the Fed is going be aggressive. “The Fed wants to keep you away from risk assets,” he said.

36 out of the 43 holdings at ARK Innovation are greater than 40% below their 52-week highs. ARK Innovation’s most prominent holdings include Roku and Teladoc Health. Zoom Video is also among them.

“The Cathie Woods ARKK performance has been so pathetic that it even though it’s not a fund, and can’t really be shot at, it still casts a shadow over all holdings. It is tempting to speak up about potential opportunities… This is a difficult streak …,” CNBC’s Jim Cramer stated on Twitter Thursday.

According to FactSet, this week’s poor performance prompted more than $280,000,000 in fund flows to exit Woods’ flagship ETF.

ARK Innovation’s turbulent start to 2022 is a result of a rough year for ARK Innovation, which fell 24% in 2021. 

Ark hasn’t changed her forecast despite Wood’s stock’s decline starting in February 2021. Wood stated that she’s only getting the highest conviction stocks at lower prices. She believes this will lead to a fourfold increase in the stock’s value over five years.

Wood continues to invest in the stocks she likes this week. Wood continues to buy the dip in her favorite stocks this week. scooped up shares of DraftKings, Block and Roblox.