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  • edited February 22
    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?
  • edited February 22
    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.

    This ain't investing, it's gambling...

    Good luck to all,

    Baseball Fan
  • 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)
  • This thread was timely. In the news today...

    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/
  • 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.

    Stay safe, Derf
  • @Derf: it does seem to be playing out today as well. My SV fund, CSB, is up while small growth is hurting.
  • beebee
    edited February 24
  • bee said:
    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'.
  • Right or wrong I did the same with K&G.
  • 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.
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