Trip7

Cathie Wood’s ARK Wasn’t Built for a Flood https://www.wsj.com/articles/ark-was...od-11620749548

In the investment world this is called getting taken out to the back and shot

Sent from my SM-N986U using Tapatalk

NuGuy

That dollar is going to worth less going forward. I wonder how the real estate market is going to hold up when interest rates start spiraling up.

JamesBond

When they go that route they won't get tipped. I don't bank on my 'phone'.

JamesBond

The article is behind a pay wall.

Gunfighter

I'm not so sure interest rates will be spiraling up. The central bank and federal government have a vested interest in keeping rates low to save their bacon. I do agree the value of a dollar will decline.

IF, interest rates rise significantly the cap rates in investment property will track upward with interest rates and create downward pressure on prices. At the same time, the associated devaluation of the dollar (inflation) will create upward pressure on rents, increasing the value of the property. Single family homes will take a hit in affordability with higher rates, which would create price stagnation or decline depending on the local market. It can also drive more people into the rental market vs buying.

In nominal dollars, rents will go up to keep pace with inflation. In real dollars they will be the same. The debt, which is fixed in nominal dollars will be reduced in real dollars due to the inflation. Those with lots of debt that is covered by increasing rents will be big winners. Those sitting on cash waiting for a crash, may have a chance to buy at higher cap rates, then potentially refinance at lower interest rates in the next cycle.

Be wary of sitting on too much cash while listening to gurus who have accurately predicted 30 of the last 3 crashes. You could be losing out on gains while waiting for the crash.

DYODD, YMMV, Objects in mirror..., etc.

mispoken

OK, fine. If you won’t zoom out, I’ll do it for you, see photo below. It’s all about perspective. Short term movements no matter how erratic are pointless except for creating hype. True investors give them little to no mind. 99% of articles published by CNBC, Wall Street, Bloomberg and so fourth are trash. Nowadays it’s all about creating the catchiest headline and provoking an emotional response for eyes on the page to sell advertising. Have fun investing in toaster manufacturers for the 1% dividend though.

disclaimer; I couldn’t give two S#!ts about Cathie or Ark. no position.

Buck Rogers

But why does anyone want to give a "fair" picture and a bigger perspective when it doesn't fit their narrative?

Trip7

Returns represent past performance, are not a guarantee of future performance. As I stated months ago ARKK investors should thank their lucky stars they caught a story stock wave and bail out as the next 10 years does not look kind to those types of stocks. This is just the beginning. There is time to get out before things go nuclear for story stocks.

Sent from my SM-N986U using Tapatalk

mispoken

I must say, your level of confidence vs your level of experience is impressive! Time to depart from this volley until the next one. Alway remember, nobody knows anything (not even the guy that wrote the book you read about value investing).

best of luck!

notEnuf

ARKK is down to where it was in OCT-NOV. There's a real value argument for it now. Of course it has its place in a portfolio.