-->

Why the ARKK Matters so Much

Post a Comment
unsubscribe


AlphaShark logo

Hey Trader,


In case you missed it, Ark Innovation ETF (ARKK) hasn't had the easiest go. 

And when I say easiest go... what I actually mean this is one of the fastest burnouts I've ever seen when it comes to such a prominent ETF.

This hasn't always been the story…

Growth investors have flocked to the ETF over the last few years and it's paid off. This impressive growth fund has been the lucky beneficiary of some large valuation, especially through the pandemic.

As interest rates floated near zero, ARKK outperformed most of the benchmark funds including QQQ.

However, lately, the ETF has been on a quick decline, already down 22% — whipsawing investors in both directions.

Of the 44 components of the fund, including powerhouses like Tesla (TSLA), Shopify (SHOP), Zoom Video (ZM), none are currently in the green this year. In turn, we've seen investors struggling to keep up.

ARKK topped out just shy of $160 a year ago fueled by short-term rallies but now the ETF sits around $63, forcing investors to lick their wounds. 

Truthfully…I don't see this changing anytime soon. 

Growth stocks are still terribly overvalued and as volatility continues to ransack the market, I believe we'll continue to see the weakness in these stocks magnified. 

So while  ARKK's performance during the pandemic was impressive, the thematic investing bubble is on the verge of popping. 

With that being said, be smart.

Plan properly and try to detach the emotion you feel to your investments, and be sure to trust the factual evidence behind your portfolio. 


That's all from me,



Regards,

Andrew Keene



Andrew Keene
Andrew Keene

"AlphaShark.com ("AlphaShark" or "AlphaShark Trading") is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of AlphaShark are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone. Disclaimer: Futures, Options, and Currency trading all have large potential rewards, but they also have large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, options, or currencies. No representation is being made that any individual, group, or entity will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
Visit our website below to read the full disclaimer.
http://alphashark.com/disclaimer/


Related Posts

There is no other posts in this category.

Post a Comment

Subscribe Our Newsletter