ARK funds - Could we see the light at the end of tunnel ?
Hello Traders and (and maybe Tech/ Value / Longterm Investors ?),
ARK funds took BIG hit last year and sell-offs continue. (Panic and uncertainty at the market, raising Inflation and Interest rates, ... War or Pandemy, what could be worse ? WW3 ? ).
So are the ARK funds Investable ? I believe so... but under some conditions.
1) Most stocks were simply overvalued and still not profitable. (Growth stocks investing in the future potential).
2) Most stocks are good picks and can be found also in funds of many other famous investors).
3) You need to believe there are some technologies which will shape future world same like do companies like APPLE, Facebook, Amazin or other giants today. Because many of todays giants are going to do bad decisions (or simply don´t pay attention) and lose their stake of market.
4) Investing in the ETF which is diversified into 30+ Stocks is some king of protection against stockpicking.Entire ARK strategy is based on statistics = some companies will be loosers, BUT some will WIN BIG.
To setup some good investing strategy we should find place whereRisk:Reward ratio is best.
- If you look at the chart of individual stocks in this ETF most of them are finding lower lows and creating simple / double RSI convergencies.
- P/E ratios could be still high (above 20), but check history of Walmart´s or Amazon´s P/E.
- Nearest support level is Pre-pandemic zone of 40-60 USD.
In my opinion, we are forming last wave (v) of C corrective wave. Using Fibonachi extension of Wave A, ost probable zone for GOOD buy opportunity is around 62.9 USD (1.414 Extension).
(= -16% from current level)
BEST opportunity will be if the price drops to 49-40 USD zone (Maybe some sharp wick to gather stop-losses).
(= - 30% from current level)
Risks:
- US Dollar currency index seems to form triangel on 1W Timeframe. if we reach to top line and turn around, it will mean positive outlook for speculative High growth companies and Crypto market.
- World War 3 (small chance, But in that case the stock market really doesn´t matter for few years);
- Very high inflation (than you really wanna be invested in something with huge growth).
Recommendation:
- DO YOUR HOMEWORK and check all the companies in the ARK fund which you would like to buy to be sure it rezonate with U. also check "Scottish Mortgage Investment TRUST" (Ticker:SMT) which I personally like. They came first with Tesla investment thesis and benefitted most. ;)
ARK funds took BIG hit last year and sell-offs continue. (Panic and uncertainty at the market, raising Inflation and Interest rates, ... War or Pandemy, what could be worse ? WW3 ? ).
So are the ARK funds Investable ? I believe so... but under some conditions.
1) Most stocks were simply overvalued and still not profitable. (Growth stocks investing in the future potential).
2) Most stocks are good picks and can be found also in funds of many other famous investors).
3) You need to believe there are some technologies which will shape future world same like do companies like APPLE, Facebook, Amazin or other giants today. Because many of todays giants are going to do bad decisions (or simply don´t pay attention) and lose their stake of market.
4) Investing in the ETF which is diversified into 30+ Stocks is some king of protection against stockpicking.Entire ARK strategy is based on statistics = some companies will be loosers, BUT some will WIN BIG.
To setup some good investing strategy we should find place whereRisk:Reward ratio is best.
- If you look at the chart of individual stocks in this ETF most of them are finding lower lows and creating simple / double RSI convergencies.
- P/E ratios could be still high (above 20), but check history of Walmart´s or Amazon´s P/E.
- Nearest support level is Pre-pandemic zone of 40-60 USD.
In my opinion, we are forming last wave (v) of C corrective wave. Using Fibonachi extension of Wave A, ost probable zone for GOOD buy opportunity is around 62.9 USD (1.414 Extension).
(= -16% from current level)
BEST opportunity will be if the price drops to 49-40 USD zone (Maybe some sharp wick to gather stop-losses).
(= - 30% from current level)
Risks:
- US Dollar currency index seems to form triangel on 1W Timeframe. if we reach to top line and turn around, it will mean positive outlook for speculative High growth companies and Crypto market.
- World War 3 (small chance, But in that case the stock market really doesn´t matter for few years);
- Very high inflation (than you really wanna be invested in something with huge growth).
Recommendation:
- DO YOUR HOMEWORK and check all the companies in the ARK fund which you would like to buy to be sure it rezonate with U. also check "Scottish Mortgage Investment TRUST" (Ticker:SMT) which I personally like. They came first with Tesla investment thesis and benefitted most. ;)