12 years ago when I started this journey(trading/investing), I told myself: you have to review the background of the most successful traders and investors and pick the bullet points that work the best for you!
Before I came to the US 2 years ago, I have never heard about ARK invest. I remember the first time I search for the best-performing hedge fund in the past 5 years, ARK invest and Cathie Woods.
I was reading about their strategies and checked all their fund's holdings one by one, I built a watchlist of ARKG, ARKK, ARKW...etc.
From the fundamental point of view, I noticed they invest in companies that barely have revenue and if they generate revenue they are not profitable and will not become profitable in the next 5 years!
Moreover, they have invested more than 99.9% of the funds and it will limit their action!
Another common feature between their investing was a beautiful story and multi-trillion dollars disruption! Usually, they mention 30 trillion dollars in their interviews..!
The bigger Fool theory:
Story of Fake gurus on YouTube: I notice there are lots of YouTubers with the same mantra: "I buy because ARK invest has bought", some times even a rumor was enough to cause the price jump, like BNGO's +3000% move in less than 40 trading days!
By the time I found out Bill Hwang was the one who provide the seed money for the first 4 ARK's funds I became confident that something must be wrong..!
After finishing my research, I have published more than 20 short articles on ARKK and other ARK funds in the past year, Althogh, I received much criticism, today ARKK is trading -51.29% from its All-Time-High..! and I'm confident that is not the end of the story..!
I think in the best scenario it will go down to 60, and the worst scenario could push it down to 30-35..!
You may think I am crazy, but reviewing Cathie Woods's performance in 2008, shows her disruptive thematic investment had -38-48% performance!
In the past year, those who hold their positions were on the Wrong Side of the Equation..!
Best, Moshkelgosha
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I think someone in the ARk invest has read this..! Look at their last tweet: ARK is aware of hacked third-party YouTube channels fraudulently posing as ARK &/or Cathie Wood. These accounts are impersonators & not affiliated with ARK or Cathie Wood in any way. ARK Invest will never use social media to solicit money, including cryptocurrency. Please report! twitter.com/ARKInvest/status/1484555640077004800?s=20
anything could happen on the stock market, it is very important always for viewing their holding companies with most ETF from fundamental perspective, I can't say her biotech or heavy tech investment is bad. she is a businesswomen who is a very long-term investor , she has good year or bad year. I totally understanding, But in technical perspective, chart, pattern behavior, indicator are the most important tool for me to make intelligent investment for myself , When stocks go up with the pattern i like to see, i am a investor to hold. When major pattern changes( like breaking aways the trendline with % of penetration of downtrend , i am become a day trader and act right away to minizine lost and lock profit with max 1/8 of height ( which takes some experience and technical experience). Recent years alot of these stuff priced up quickly was done by lot of promotion not so much of performance. I am not say ARKK are bad investment, I like to stick with the chart and follow the crowd or go away the crowd
orilleyo
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Thank you for your insight M ! Great food for thought.
To be honest, it was just about time for lofty valuations to hit a ceiling. This reminds me of Jan-May 2021. it is the same story happening again, when the market realised there is inflation coming up soon, and it's gonna be nasty.
To be honest, if we gonna look at any sort of support, Feb2021 lows are a good place to start building up the portfolio again. We are back to square one of the inflation and rate hike story.