Why Most Investors LOST Money by Investing in ARK FUNDS
Companies / Investment Funds Jan 27, 2022 - 09:53 PM GMTBy: Nadeem_Walayat
Understand this, it is highly probable that 90% of RETAIL INVESTORs in ARK Funds have LOST MONEY!
LOOK at the volume on the ARKK chart and that tells you when the retail investors were FOMO-ing, then buying the DIPS in ARKK!
Retail investors did NOT invest in 2018, 2019 or 2020, in what at the time were small obscure funds that they would have been totally oblivious to. Instead they FOMO 'd RIGHT at the very end of the ARKK mania which is why I had not even heard of Cathy Wood or ARK until patrons started asking my opinion on her funds in February this year, I took a look and as I said at the time when I looked under the hood I nearly puked!
PURE GARBAGE!
The whole operation stinks of PUMPs and DUMPs! ARKK would buy and then make that buy public and so the pumps begin, then ARKK dumps. However even such manipulation has FAILED to deliver any gains for investors for that is not the purpose of such funds. They exist purely to hood wink retail investors led like lambs to slaughter, stripped of their wealth all whilst Cathy saleswoman of the year Wood continues with her sales pitch where even now despite her funds bloodbath she still rambles off on her delusional fantasy projections of ARKK quadrupling over the next 5 years! That's 80% per ANNUM!
QUADRUPLE she says, ARKK has a mountain of retail investors sat nursing huge losses just waiting for an opportunity to GET out near break even at around the $119 average line, which means it's going to be very hard for ARKK to break through that wall of worried retail investors just waiting for the an opportunity to exit ARKK.
ETF BUBBLE Primed to EXPLODE!
$1 TRILLION DOLLARS! That's how much retail investors have plowed into ETF's over the past year! A record amount! Much of which has been piled into the FAANG's and related tech giants such as TESLA. So what happens when they all try and run for the exit at the same time? How will the funds meet redemptions and keep portfolio weights in line with the indices that most passive ETF's tend to track?
FORCED SELLING AND FREEZING REDEMPTIONS!
So I will once more iterate my warning that Funds and ETF's either passive index trackers or those such as ARKK are NOT LOWER risk than holding individual stocks. Instead investors have parked a huge chunk of their wealth in ETF's that likely will be busy engineering a positive public relations picture that is far removed from the reality of said funds true values depending on the algorithms they have in place.
After all it was program selling by funds that delivered my greatest ever one day profit in relative terms on October the 19th 1987 when the 'algorithms' sold stocks in ever increasing waves by the hour right into the close.
Think the same cannot happen again? Maybe not all in one day but we are PRIMED for the same as we got a taste of in March 2020! THAT was program selling spread out over 2 weeks. The only surprising thing is that none of the funds froze but that was before the Fed printed another $4.5 trillion to buy assets and retail investors plowed another $1.5 trillion dollars into ETF's.
A market panic event could easily trigger Forced SELLING and result in FROZEN FUNDS that investor\s will not be able to sell out of until the fund managers say they can by which time the damage will have been done!
This is what I warned of many moons ago of what could happen to ARKK and in fact ANY fund which is why I tend to repeat this warning at least a 2 or 3 times a year. And why so far I have not personally invested in any of the funds listed in my AI stocks portfolio and even if I had my exposure would be very limited .
So once more DO NOT MAKE THE MISTAKE of assuming funds are LOWER risk than individuals stocks, they are NOT, they are HIGHER RISK!
And what's worse now is we have funds of funds that brokers are eager to pitch to their retail clients due to recurring commissions earned, a proverbial merry go around just waiting to IMPLODE!
Don't think it can not happen? We'll I googled just before posting and already hedge funds are FREEZING CLIENT FUNDS! Anchorage capital have SUSPENDED client withdrawals as they prepare to close their fund.
Is this the canary in the COAL MINE of what's going to come in 2022? YOU HAVE BEEN FOREWARNED!
INVEST AND FORGET
Do revisit my original article (How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond ) as to remind oneself of what it means to invest in HIGH RISK STOCKS and WHY the portfolio is supposed to be INVEST and FORGET! Which is how I have been investing in high risk stocks for decades, pick stocks for good reasons and then invest and forget, with price alerts and maybe limit orders to alert me to take action other than that I do not think about them at all!
This article is an excerpt from my recent in-depth analysis that updates the current status of my High Risk Bio and Tech Stocks portfolio.
High Risk Bio and Tech Stocks Portfolio Q4 2021 Update
Contents:
Exponential AI Mega-trend
INVESTING PRIORITY
Why Most Investors LOST Money by Investing in ARK FUNDS
ETF BUBBLE Primed to EXPLODE!
INVEST AND FORGET
BREWING FINANCIAL CRISIS 2.0 - RECESSION 2022
FED TAPER CON TRICK
CP LIE - INFLATION vs DEFLATION
UK Inflation Fraud - Real Inflation is 15%+
The 2% Inflation SCAM, Millions of Workers take the Red Pill
Why Inflation is Soaring
Flip Side High Inflation Winners
Warren Buffetts $130 billion Master Plan
STOCK MARKET CRASH INDICATOR
The Quantum Entangled Stock Market
Unloved Biotech Sector
High Risk Stocks Portfolio
COINBASE $247, Risk 1, P/E 19, +0%
TAKEDA $13.7 - Risk 1, PE 10, -19%
Western Digital $56.7, Risk 2, PE 13, -2%
ABBV $132, Risk 2, PE Ratio 11, 4% Dividend, +24%
CORSAIR $21.7 - Risk 3, PE 11, -26%
Neurocrine Bioscience (NBIX) $84, PE 18, Risk 3
ALI BLAH BLAH BABA (9988) $120, PE 17.2, Risk 3
TENCENT TCEHY (0700) $57, PE 19, Risk 4, -9%
RBLX $95. Risk 6, +7%
CRISPR $74, PE 15.3, RIsk 6, -39%
AVIR P/E 30.5 , Risk 9, -71%
APM $1.88, -37%
ACCUMULATING
AI Stocks Portfolio
Limit Orders
Best Stock Investing Platforms
CRYPTO BRIEF
OMICRON a Fuss About NOTHING
The whole of which was first been made available to Patrons who support my work. So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.
Also Access to the most recent compressive analysis on how to successfully invest in stocks during 2022 and beyond.
HOW TO SUCCESSFULLY INVEST IN STOCKS During 2022 and Beyond
CONTENTS:
1. UNDERSTAND WHAT INVESTING IS
2. INVEST IN GOOD COMPANIES
3. UNDERSTAND THAT WHICH ONE IS INVESTING IN
4. STOCK PRICES
5. EARNINGS CATCHUP TRADING RANGE TREND PATTERN
6. EMOTIONAL INVESTING
7. MONITORING AND LIMITING EXPOSURE IS MOST IMPORTANT
8. BUY AND SELL on the Basis of VALUATIONS
9. INVESTORS BIGGEST MISTAKE
10. BEST TIME TO BUY STOCKS
11. WORST TIME TO BUY STOCKS
12. BUY VOLATILITY
13. INVESTING TIME
14. FUND MANAGERS
15. OPTIONS
16 . INFLATION
17. INVEST AND FOREGET
AI Tech Stocks Draw down and End of Year 2022 Price Targets
CATHY WOOD ARK GARBAGE
And access to my extensive analysis on how to capitalise on the metaverse. Best Stocks To Profit From the $1+ Trillion Emerging Metaverse Mega-trend
Contents:
VR and Gaming Becomes the Metaverse
A Video Message from Your Metaverse Analyst
PRIMARY META-VERSE STOCKS
QUANTUM AI METAVERSE STOCKS
METAVERSE STOCKS UNIVERSE
Google Glass a Big Fat FAIL
META (Facebook) Dominating VR
APPLE AR Headset Coming 2022
ROBLOX - High Risk
TENCENT- Chinese High Risk GAMING
XXXXXX - CAD - $254 RISK - 3 OUT OF 10
XXXXXX - RISK 3 OUT OF 10.
XXXXXX NEW LIFE FOR AGEING GAMING GIANT? RISK 2 OUT OF 10
XXXXXX - DIGITIZING THE REAL WORLD - RISK 8 OUT OF 10
INTEL Black Friday Sale!
IBM The REAL Quantum Metaverse STOCK!
NVIDIA THE KING OF THE METAVERSE!
XXXXX
AI Stocks Portfolio Current State
AI Stocks - What's Cheap
AI Stocks - What's far value
AI Stocks - What's expensive?
Stock Market Trend Forecast Current State
Current State of Cathy Wood ARKK Garbage
RIVIAN IPO Illustrates We are in the Mother of all Stock Bubbles
DECENTRALAND
SANDBOX
How to Get Rich in the MetaVerse
Bitcoin Trend Analysis
Crypto Current Portfolio
Covid19 Winter Storm Fuel for Financial Crisis 2.0
OMICRON - The 'Oh Dear' Worst Ever Covid Strain?
Consequences for the Stock Markets?
Financial Crisis 2.0 Current State - TAPERING
Financial Crisis 2.0 Stock Market Bubble Investing Strategy
Why You Should Not Fear a 50% Draw down in Your Stocks Portfolio
What's driving asset price inflation?
Inflation Forecasting a Recession In 2022
UK Inflation Hits 30 year High of 6%
UK Energy Customers Falling into Energy Firms Fixed Rate Tariffs Trap
Fin tech Stock - NEW STOCK
So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $4 per. https://www.patreon.com/Nadeem_Walayat.
My analysis schedule includes:
- Stock Market Trend forecast 2022 - Currently underway
- UK House Prices Trend Analysis, including an update for the US and a quick look at Canada and China - 65% done
- How to Get Rich! - 90% done - This is a good 6 month work in progress nearing completion.
- US Dollar and British Pound analysis
- Gold Price Trend Analysis - 10%
Again for immediate access to all my work do consider becoming a Patron by supporting my work for just $4 per month. https://www.patreon.com/Nadeem_Walayat.
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Your metaverse invested analyst.
Nadeem Walayat
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Nadeem Walayat has over 35 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk
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