re: The ARKK’s about to take on water?

Any news on the ARKX and when it's coming out? Thoughts on that one?

Still thinking about this myself. I didn’t jump in any of the IPOs this past year

quote:

---

ARKK down 25% to $125.

My stop loss kicked in. Sold today...

---

I sold half of my shares when it was over $150. My remaining shares are all profit but have taken a little beating here, can't decide if I still want to hold onto them

Any new thoughts on ARKX and when it's coming out?

I’m a long term ETF Indexer. I like keeping things simple and diversified while preferring a passive investment style. With the sale of ARKK my portfolio is now literally 4 ETF’s. An S&P Index, a International Index, an mREIT ETF and a short term Corp Bond ETF.

Buying ARKK was a risk I took knowingly as I got lured into the quick returns; but, the fact is the companies in much of ARK’s portfolios are not profitable. Many aren’t even earning revenue at all.

Many of the companies they hold are also the fodder of places like Reddit/WSB which makes me increasingly uncomfortable. Seeing ARKK increase its exposure to the EV bubble (Tesla) enticed me to put in a stop loss order.

The more I look, the more I think Woods has capitalized on the internet private investor/CNBC watcher and has done a brilliant job marketing herself. I don’t think her choices are sustainable over the long term compared to the S&P Index. Sure, she’ll have some outperforming periods but when the bear market hits ARK’s gonna get hammered. JMHO...

I think ARKX will likely follow the same trajectory as their other offerings. Initial interest and hype will propel them forward. At some point, actual returns become an issue as we’re seeing now with ARKK.

quote:

---

ARKX will probably be the worst because it will be overbought immediately

---

I think this is a very real possibility.

ARK etfs aren't for short term investors. She literally says their time horizons on all of their positions are like 5-10 years out. I probably shouldn't, in this type of environment we're switching to, but I'll stick with it.

quote:

---

ARK etfs aren't for short term investors.

---

I may agree on principle because she’s betting on future returns; but, let’s be honest and admit that short term investors are exactly who’s elevated the share values to what they are.

quote:

---

I don't get how it works - if it is overbought they just invest more money right

---

Overbought means the price has shifted considerably in a short period of time. Typically upwards meaning the stock/ETF is trading for more than its actual intrinsic value.

Oversold is exactly the opposite. Meaning the item is undervalued and selling for less than its worth.

i'm in arkk for the long term in my roth ira. so i'm hodl'ing

quote:

---

Which I think is great. The danger is sinking big money into highly valued companies with astronomical P:E ratios.

Boom or bust, it seems likely their results will be unusual

---

She’s somewhat a victim of her own success. If this was a mutual fund she’d have probably closed it, but given its ETF structure she doesn’t have a choice but to buy most of the same names she helped run up. It’s tough to repeat that success as AUM increases astronomically.