Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Good share and poignant quote: "Ark Innovation's stellar total returns attest to its ability to be in the right place at the right time and take advantage of emerging trends. But a closer look at the portfolio reveals plenty of potential risks. In fact, the portfolio's risk level ranks well above average on 10 of the 11 factors in Morningstar's Global Risk Model. And risk for liquidity (the 11th) may not be as low as it appears. Trading volumes can quickly dry up when valuations collapse or market darlings fall out of favor. If the fund experiences large redemptions, it could be difficult to liquidate some of the holdings where it has concentrated ownership. "
That said - (and I don't own ARK) - is it possible that she was that "lucky"? I mean ... Tesla, Square, CRSP, Roku, Spot etc?
Hard to say what's luck and what's skill, but I will say almost every investment style comes in and goes out of favor, and a manager good at one style may not be able to adapt to a new investment regime. Today was one of the most interesting days I've seen in the stock market in a long time with small value stocks way up and growth stocks way down. If we enter a new market cycle when value does well, it's hard for me to believe Ark will be able to adapt. But then people have been waiting for value's resurgence for a long time. The difference now is stimulus--good for value stocks-- but possible inflation and interest rate increases down the road, which can be damaging to highly valued growth stocks. Also, regulators and the American people are becoming fed up with tech companies' dominance over every aspect of our lives, and they are the key growth stocks.
Yes I noticed that today - luck vs. skill ... even some neg in FSEAX which was interesting. "but I will say almost every investment style comes in and goes out of favor' <-- so true. Logged into Fidelity today and they had a pop up espousing Will Danoff accumen - that he has beat the S&P for many years with a 13% avg. return since inception... need to look at that closer ... but interesting. I sold my remaining FCNTX early last year. If it's finally Value stocks time... I mean - I'm open to that but as Tom Jones would say -
1) There were a lot of could's, possibly's and potential's in this analysis. 2) ARKK holds less tech stocks than the S&P 500 3) There is little doubt that the fund and possibly the fund manager are riding a wave. What will happen next is all speculation and guess work. 4) Weren't growth stocks supposed to be toast 1-2-3-4-5-6-7-8 (and maybe more) years running? Maybe this will be the year.
Better check your portfolio to ensure it doesn't hold any of the moonshot stocks. Per barron's ark funds hold over 26 stocks with more than 10% of the float. What happens when the sell off happens?
How come the genius portfolio manager didn't close these funds before they got so large? How does that work with ETFs?
Potential dumpster fire with these funds. So like the kaka funds in the late 90s. I'm up over hondo percent, smoking cigars, drinking high end tequila and riding around in limo's...oh....now I've lost over 2\3rds the monies I started with....sheet.
ARKK is not for investors, it is a pure momentum play. Investor will identify a good stock with potential to put money in. Gambler will have to know when to get in and get out. I started getting into ADNPX managed by Cathie woods 8 months ago, made handsome of money. Eventually getting out and completely out yesterday. Tried to be investor with this fund but couldn't make it. I suspect this ARKK thing has lost momentum will be out of fashion for sometime. Will see. Lately, financial sector is in trend. ARKF (fintech ETF) peaked on 2/16/21 at 64.49, future as is of this moment 57.11)
From above LB says, ". Today was one of the most interesting days I've seen in the stock market in a long time with small value stocks way up and growth stocks way down. "
It will be interesting to see what value does today as early selling across the board seems to be occurring.
When the panic stops, I would say yes. I actually added a little ARKW yesterday after things bounced. I figured a bounce after a huge drop such as we had early was a good sign. Continued selling throughout the day would have suggested otherwise, of course.
I'm not sure that the long-awaited rotation is FINALLY occurring; nor am I sure that tech is 'toast'.
Quiet day, mostly; looks as if ARKG was trying to climb back between the Bollinger Bands. The others seem to be looking for a direction rather than trending.
The market ear article today states folks including maybe arkk are selling the quote good stocks in order to quote save the lousy stocks meaning dumpster fire, over priced, moonshot gambling chip stocks as held by kathie wood's etf's
She might crater the Nasdaq which might lead to a great buying opportunity
Who knows, get your popcorn ready and enjoy the show
And what article would that be and what is the basis of proof? The ARK funds trading records are available on a daily basis for those who would like to see them.
This list is today closing info, March 3. The list is generally available about 6:30pm, EST. The last two numbers in each line are numbers of shares buy/sell and % of that particular holding within the ETF.
"Also, regulators and the American people are becoming fed up with tech companies' dominance over every aspect of our lives, and they are the key growth stocks."
Agree, +1
Any idea when the American folks will wake the F up and realize this?
@Mark, apologies can't tell if you meant sarcasm??
Hey, don't we all think that unelected officials, he Zuck and West Coast Moses (the Twitter guy) and all the wonderful folks at Google should tell us how we should think and act.
They are so righteous and just. Stealing our personal info and feeding us brainwashing commentary. Really a form of mind control. Geniuses all of them.
Not.
Anyhoo, it appears that Cathie is getting her arse handed to her. We'll see if the drubbing continues in her ETFs. Folks might end up losing way more money in her dumpster fire than the fraud (allegedly) in IQDAX. I'm thinking that is the way it's going to play out. My larger concern is that in the escape from her funds is that the Nasdaq gets pulled down biggly in all the excitement. Again, might be solid buying opportunity.
As an observer of human nature, I wonder if she will come on Cramer and keep her narrative going, max out the hubris, buying the dip in her "disruptive" companies...you think so?
Sven - my thoughts with respect to the ARK funds is to know what you own. I think that Ms. Woods is on the right thinking track but I advocate neither for or against ownership by the masses. It's an equity like any other out there. To each their own and as has been mentioned I appreciate the total openness of management. They're not trying to fool anyone however there quite well may be plenty of fools buying in in hopes of instant gratification.
My comment you quoted has more to do with those who like to spill the blame for the world's problems on anyone or anything outside of themselves. No one is twisting anyone's arm to have a Facebook or Twitter account. Think for yourself. Shut them off. Don't use them. To me it's that simple. The opinions of their owners/CEO get no more weight from me than I give to any other individual. Frankly I can't stand Zuckerberg and I know absolutely nothing about Twitter or it's exec's.
"Think for yourself. Shut them off. Don't use them. To me it's that simple."
Never have, never will, even refuse to use Google- use DuckDuckGo instead.
"The opinions of their owners/CEO get no more weight from me than I give to any other individual. Frankly I can't stand Zuckerberg and I know absolutely nothing about Twitter or it's exec's."
I had no trouble accessing the link as posted. I thought it was quite informative given the tsunami of negative articles on her recently.
She had a mentor. so what!? Many professionals have a mentor pulling or moving them up the corporate ladder. That doesn't mean the individual being mentored shares all of the mentors thoughts and beliefs. Shallow thinking much?
I also saw no mention of Biden in the article so I'm clueless about what @davidrmoran was referring to.
Such things often leave me wondering if folks just feel threatened by an intelligent, educated, and successful female so lets nitpick stupid stuff. Frankly I don't think the game is over yet.
Thanks for sharing the podcast. I thought it was a very fair and balanced interview. Plus Kennedy and Reagan and minus Nixon and Carter. I’m intrigued by Cathie. I don’t own any of her ETFs but am interested in researching them further like I am with Eventide funds.
Comments
That said - (and I don't own ARK) - is it possible that she was that "lucky"? I mean ... Tesla, Square, CRSP, Roku, Spot etc?
2) ARKK holds less tech stocks than the S&P 500
3) There is little doubt that the fund and possibly the fund manager are riding a wave. What will happen next is all speculation and guess work.
4) Weren't growth stocks supposed to be toast 1-2-3-4-5-6-7-8 (and maybe more) years running? Maybe this will be the year.
How come the genius portfolio manager didn't close these funds before they got so large? How does that work with ETFs?
Potential dumpster fire with these funds. So like the kaka funds in the late 90s. I'm up over hondo percent, smoking cigars, drinking high end tequila and riding around in limo's...oh....now I've lost over 2\3rds the monies I started with....sheet.
This ain't investing, it's gambling...
Good luck to all,
Baseball Fan
Negative:
Marketwatch: "A tangled market web of Tesla-bitcoin-ARK Investment could spell trouble for investors, warns strategist" https://www.marketwatch.com/story/a-tangled-market-web-of-tesla-bitcoin-ark-investment-could-spell-trouble-for-investors-warns-strategist-11614081538
Positive:
Investors Business Daily: https://www.investors.com/etfs-and-funds/sectors/cathie-wood-ark-schools-warren-buffett-top-stocks/
It will be interesting to see what value does today as early selling across the board seems to be occurring.
Stay safe, Derf
Fund just recorded worst two-day decline since September
Buy the dip?
https://theirrelevantinvestor.com/2021/02/23/buy-the-dip/
I'm not sure that the long-awaited rotation is FINALLY occurring; nor am I sure that tech is 'toast'.
cathie-wood-s-flagship-etf-roars-back-with-near-record-inflow
She might crater the Nasdaq which might lead to a great buying opportunity
Who knows, get your popcorn ready and enjoy the show
Best,
Baseball Fan
Jeez, talk about doing prop trading from within an ETF wrapper.
On the upside, kudos for transparency, I guess.
Stay safe, Derf
"Also, regulators and the American people are becoming fed up with tech companies' dominance over every aspect of our lives, and they are the key growth stocks."
Agree, +1
Any idea when the American folks will wake the F up and realize this?
Baseball Fan
Hey, don't we all think that unelected officials, he Zuck and West Coast Moses (the Twitter guy) and all the wonderful folks at Google should tell us how we should think and act.
They are so righteous and just. Stealing our personal info and feeding us brainwashing commentary. Really a form of mind control. Geniuses all of them.
Not.
Anyhoo, it appears that Cathie is getting her arse handed to her. We'll see if the drubbing continues in her ETFs. Folks might end up losing way more money in her dumpster fire than the fraud (allegedly) in IQDAX. I'm thinking that is the way it's going to play out. My larger concern is that in the escape from her funds is that the Nasdaq gets pulled down biggly in all the excitement. Again, might be solid buying opportunity.
As an observer of human nature, I wonder if she will come on Cramer and keep her narrative going, max out the hubris, buying the dip in her "disruptive" companies...you think so?
Baseball Fan
My comment you quoted has more to do with those who like to spill the blame for the world's problems on anyone or anything outside of themselves. No one is twisting anyone's arm to have a Facebook or Twitter account. Think for yourself. Shut them off. Don't use them. To me it's that simple. The opinions of their owners/CEO get no more weight from me than I give to any other individual. Frankly I can't stand Zuckerberg and I know absolutely nothing about Twitter or it's exec's.
Never have, never will, even refuse to use Google- use DuckDuckGo instead.
"The opinions of their owners/CEO get no more weight from me than I give to any other individual. Frankly I can't stand Zuckerberg and I know absolutely nothing about Twitter or it's exec's."
Exactamente!
One cautionary tidbit: her mentor at USC was Arthur Laffer of laughable Laffer Curve fame.
She had a mentor. so what!? Many professionals have a mentor pulling or moving them up the corporate ladder. That doesn't mean the individual being mentored shares all of the mentors thoughts and beliefs. Shallow thinking much?
I also saw no mention of Biden in the article so I'm clueless about what @davidrmoran was referring to.
Such things often leave me wondering if folks just feel threatened by an intelligent, educated, and successful female so lets nitpick stupid stuff. Frankly I don't think the game is over yet.
https://ark-invest.com/podcast/economics-trade-relations-and-innovation-recognizing-investment-potential-with-dr-art-laffer-and-cathie-wood/
https://www.afr.com/markets/equity-markets/tesla-bull-warns-biden-presidency-could-stifle-innovation-20201008-p56337