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I'm Not Sure Wood at ARK ETF Knows What "Soul Searching" Really Is
Terrible destruction of wealth. Hoping most in that fund didn't invest a substantial portion of their hard earned monies into this crap.
Willingly acts to cause harm. She must've known this was all bullspit no?
At what point does this cross over into malfeasance? Did Wood not enrich herself thru promotion of her fund?
Answering balubalu. Low to mid 50s is where maybe worth trying to catch a falling knife
Posting for entertainment purposes only
I don't know anything about anything
I’m tip-toeing into DKNG (one of Wood’s gems) at below $20. Here’s one that was $75 10 months ago. Small amount. Long term hold at this price. Daily price swings of 5-8% in either direction are common. (I’ve traded in and out in the past.) Have used their app for a year. Like it. Cannot find any material change in the health or prospects of the company. Highly speculative of course.
It’s sad that many have lost their shirts on ARKK. Am not familiar with Wood’s other holdings except for the one I own. Tesla builds a fine car. Musk’s a genius. I get it. But companies exist on cash flow and have intrinsic value. That appears to have been lost in the minds of many. Something I don’t hear a lot about in the press is that most of these companies have piles of debt. With rates going up, that’s an added strain.
I agree with @wxman123 to the extent than the early investors in ARKK did very well. Wonder how many piled in a year ago, however?
PS - I wouldn’t rule out buying in myself at some future point. But, got too many irons in the fire right now as is …
However, I believe I have been consistent in my views re this specific investment, ARKK etc.
We'll see how it works out, you might be right, who knows?
I bailed from DKNG in November at above $40. So that one has fallen over 50% in 2 months.
(Currently $19.46 (the year of my birth - spooky)!
Even if such big gains are possible, many investors may not be able to stomach this kind of volatility and could time their purchases and sales as poorly in the future as they already did in the past.
Excerpt from above: “Morningstar doesn’t help. Even now, with a lifetime negative P&L, ARKK has four stars and is the #1 ranked fund over five years. Morningstar’s rankings are all based on quantitative data, presumably to eliminate any analyst judgment. But you might think that the trajectory of ARKK’s cumulative profits would be worth considering. It’s hard to identify much useful for investors here, although Morningstar rankings do drive fund flows which generally benefits managers.”
What I’m wondering about is litigation? This is beginning to approach or exceed the disaster of Oppenheimer’s Champion Income Fund in 2008. There was successful litigation against Oppenheimer Funds following that fiasco. An internet search turned up nothing. If Wood has made positive public pronouncements unwittingly, however, it could strengthen a case.
M* Forward-looking Analyst Rating is Neutral.
Moreover, M* has had many negative comments & pieces on ARK.
Hard to blame M* on this.
Just skimming, it sounds like Oppenheimer made material, misleading statements (aka "lies") about what it was doing. That's not the impression I get about ARKK. Woods is saying she expects annualized yields averaging 40% over the next five years and has explained why. That would seem to be considered "puffing", rather than, um, "misleading".
We have at least one poster here who appears to feel this is reasonably possible even it it doesn't pan out: "I guess we'll know in 5 years." There may be a fine line between good salesmanship and illegal deception, but so long as Woods invests according to her statements and the ETFs' prospectuses, I don't think she's crossed that line.
From the SEC release:
ARKK's Claims of an Anti-Innovation Market Ring Hollow Each of the bolded sections contradicts or weakens a claim made by Wood. The body of each section presents a fair amount of data and graphs.
It all seems to me simply like a tech gogo way up / way down event, such as some of us have seen in the past. Extremely hot 'n' hopeful followed by plunging losses. Like a 1995 Robertson Stephens fund (in some of which I and many others made and lost serious moneys; they underwrote the IPO of the startup where I worked, and held extremely exciting staff meetings).
The foolish and cruelly impugning subject hed here, plus Wood's own dumberer pronouncements, and this idiocy --- seriously??
\\ Terrible destruction of wealth.
\\ Willingly acts to cause harm. She must've known this was all bullspit no?
\\\ At what point does this cross over into malfeasance? Did Wood not enrich herself thru promotion of her fund?
quite apart from the opaque silliness of 'If Wood has made positive public pronouncements unwittingly' and 'guess we'll know in 5 years' (hell, we'll know about everything then!), ...
yeah, way past time to leave the subject.
What a thread.
Thanks for this thread. Educational & timely.
'It’s very hard to escape the sense that there’s mania now, that this is a FOMO market. When you look at the way that people have piled into the stocks of bankrupt companies like Hertz ....'
Melvin had shorted a bunch of meme stocks (like Gamestop, AMC) ) because all their sophisticated analysis indicated these stocks were ripe for picking (overpriced). I got the impression literally millions of small investors banded together via internet forums to drive these stocks sky high. Melvin nearly folded. Didn’t understand at first what had hit them as the numbers seemed so out-of-whack. Clawing their way back now. Still in the red. But the power of irrationality compounded by internet forums is truly amazing - albeit a bit frightening.
Old news? Yes. But the degree of organization / coordination was really highlighted in the referenced article.
* Came across the membership of “Wall Street Bets” (website) where a lot of the coordinated effort originated: 11 million members Jan.1, 2021 according to the WSJ. That was up from 2 million the prior year.