That is exactly the kind of thinking that destroys people in a bear market. Theoretical fundamental values are not part of the equation in forced liquidations. A large reason reason for that is the fact that forced liquidations cause a negative wealth effect and further erosion in the theoretical fundamental values while also irreparably destroying the supply/demand equation in the security for a minimum of the short and intermediate term time horizons. 

    Already green, money flowing back

    Posted by fundamentalvalues on 11th of May 2021 at 11:42 am

    Already green, money flowing back into these great companies. We aren't in a bear market or headed for one this year. Maybe a 10% pullback coming to 3,800s SPX if it goes that deep over the next two months. I'm aware that I can be wrong, though like my chances.. ARKK will be back sooner than later and likely the SPX at 5,000 next year sometime...I've invested in this fashion for many years in many areas in different markets..this is just one allocation of my strategy and I'm reasonably allocated. If it went to $0, I'd be fine in other areas. 

    Have a look at the holdings, these companies are growing and an important part of world business. This isn't the 2000 tech bubble or whatever other commentary I've been seeing. Not even close in comparison. 

    If they take ARKK to $95, I'll buy more, though I don't think it will get there. At some point, everything that has been taken down will be loaded and rode back up. Just ask all the energy haters when I was saying to buy the 3x oil etf when things were crushed and it was being said that oil was obsolete. All back in vogue now. Just how markets work. That situation was hilarious but very, very profitable for me. What about Meredith Whitney crushing muni markets years ago. I stepped in back then and still have many of those positions and just compounding all the gains. This is how the market works. 

    Happily executing my personal plan. Buying at this type of discount is an incredible opportunity.

    ARKK’s holdings have  been in

    Posted by chartboy on 11th of May 2021 at 01:30 pm

    ARKK’s holdings have  been in bear in a market since @Feb 16th as has most of the related tech names. That is an undeniable fact. There is no question it will end at some point, and bounce along the way, but that doesnt change the fact that buying into a bearish market on fundamentals is a very dangerous strategy that has led to the demise of legions of people who became complacent using that approach after long bull markets rolled over as everyone has. 

    I've done pretty well being

    Posted by fundamentalvalues on 12th of May 2021 at 08:07 am

    I've done pretty well being a dip buyer in QQQ and ARKK over the last 5 years. Cathie has done 96% a year the on average the last 5 years even without buying dips. The world isn't going back to the way it was before, growth tech just became parabolic short term and needed to correct. 

    It is good to see some of my other "old hat" and other holdings catch strength..just means the bull market is broadening in strength.. Cathie's still up 79% even after the recent draw down the past year. I'm just glad I wasn't sitting around for 5 years waiting for gold or pressing short bets too long    See the QQQ, ARRK, and GLD comparisons below..if you can't beat em, join em....QQQ is up in one year what it took GLD 5 years to do. ARKK more than doubled GLD's 5 year performance in one year..

    The media and some others have been focusing on the last month or so..lets look at a cycle. Will continue to cost average in these or other strategies as opportunities present themselves. I'm not worried about my "demise" as I know how to allocate capital. I have good paid for positions just from profits alone. Anyone that has a shred of an idea of how to trade or invest protects capital well. Facts are facts. 

    The statement that the market

    Posted by chartboy on 12th of May 2021 at 08:30 am

    The statement that the market is broadening in strength has no basis in fact. The numbers do not lie, it is narrowing. What it is doing however is rotating into late cycle names. More relevant to ARKK, the relative strength of technology has made a major top that is very strongly statistical correlated to very long periods of relative underperfomance (decade +). In fact, it is virtually identical to the peak of relative performance that occurred in early 2000 and led to tech never surpassing those levels for 15 years and only after draw downs exceeding well of 50% in most tech ETFs like ARKK.

    Remember, most investors thought it was “different this time” in 2000 as well. 

    So ARKK being up 482%

    Posted by fundamentalvalues on 12th of May 2021 at 08:50 am

    So ARKK being up 482% the last five years is all going to be erased now lol..the point is the corrections are buying opportunities..what about the QQQ, it is going under too? Those companies run the world and are cash cows growing ridiculously as I showed in the previous performance, AAPL, MSFT, AMZN, GOOGL, etc...40% a year for the fund on average the last 5 years..

    the companies in ARKK are not 2000 era tech companies. Tesla, Square,Teledoc, Roku, Zoom, Zillow, Spotify..they are here to stay and running the forward looking business world...some of them have become an essential part of our world now for personal and business use..last post, facts are facts. The cash you would have made could fan you much better than those charts...also, the likelihood of any major breakdown back to back years is very improbable..we would need another pandemic or aliens to land here...That is all. 

    I'm appreciative of both your

    Posted by retirefire on 12th of May 2021 at 08:42 am

    I'm appreciative of both your commentary here gentlemen.

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