EPTTrading/Investing Thread - Page 107
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JimmiC
Canada22817 Posts
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3FFA
United States3931 Posts
On May 18 2022 22:10 JimmiC wrote: Has anyone done much research into the ARKK efts? They were super hot a year or 2 ago and have taken a huge loss (sometimes half) this year. I'm wondering if now is the time to buy? I would watch this video that came out right before their peak of consumer interest was reached and before the fall started. I would sooner invest in SARK than ARKK. And if I wanted high risk for high expected returns I would look to factor-based ETFs that align with Value and Momentum such as Alpha Architect's ETFs, Avantis's, and/or Dimensional's. Someone with high wealth could also look into AQR. Quick example.of US-only factor portfolios implementing this idea ![[image loading]](https://i.imgur.com/fjyXNBY.png) | ||
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JimmiC
Canada22817 Posts
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{CC}StealthBlue
United States41117 Posts
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{CC}StealthBlue
United States41117 Posts
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3FFA
United States3931 Posts
On May 19 2022 04:25 JimmiC wrote: Thanks for the info I will give it a watch. I have looked into Dimensional and I like their math/econ approach as well as their MERs. The rest I will have to check out. Let me know if you have any specific questions you run into or another strategy you're curious about. There's tons of research backing this stuff and I'm pretty well versed in it at this point. | ||
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{CC}StealthBlue
United States41117 Posts
![[image loading]](https://preview.redd.it/yv2zw2o7ft091.png?width=1024&auto=webp&s=fe59f8c0d7a4b3ba7cb559dadd70ea4a101c1d7c) | ||
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3FFA
United States3931 Posts
50% QVAL 25% SARK 25% QMOM The idea from a factor-oriented point of view is that SARK shorts the market factor while providing positive loadings to the other 4 factors of the Fama French 5-Factor-Model. This balances out the extra market loading that QMOM and QVAL have due to their concentration which results in ultimately positive loadings to all 5 factors. In layman's terms, over the long-term, When the market goes down - SARK hedges enough to keep returns positive. When the market goes up - SARK shouldn't go down enough to prevent the rest of the portfolio's gains. Also own KMLM in a taxable account(ideally this should be held in the Roth too tbh) as well as AVES | ||
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BlueBird.
United States3889 Posts
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{CC}StealthBlue
United States41117 Posts
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3FFA
United States3931 Posts
On May 25 2022 14:26 BlueBird. wrote: This feels a little fidgety/market timing to me. I know that you have talked about trusting research and i wonder if the SARK position is a little bit too cute. Also Cathie Wood could in theory change the way the ARK portfolios are constructed meaning a lot of your reasoning for having SARK could quickly become less useful. Moving between positions to rectify these changes can cause portfolio drag especially in a volatile environment. You could miss on a big day for instance. Can you see yourself holding SARK for 10+ years, sounds a bit crazy to me. That's perfectly understandable. I'm probably crazy. Even John Bogle shifted his own account with the changes of the market. I'm doing that myself with the addition of SARK. On changing the construction of ARK, if that happens it's a risk I'm accepting. I'm in my mid-20s and can make up any lost time. As far as construction changing, if anything they are consistently doubling down on their construction methodology. If ARKK reaches a point where it doesn't have a ton of AUM in it anymore, I will consider removing it at that point. Lately people have been pouring more money into it even as it goes down. The historical odds are stacked against it both from a fund manager standpoint and a more empirical, academic standpoint. Consistently throughout history these types of funds have underperformed at best. I like both those odds and the factor loadings of ARKK when inverted. ![[image loading]](https://i.imgur.com/BhEjrgn.png) edit: Some visuals to further demonstrate this. Fun chart. TSLA (top left) and ZM (top right) are the higher quality ARKK holdings. Big concentration bottom left, that's the lottery-type stocks getting beat down right now. Generally, you want to stay away from those as an investor. + Show Spoiler + ![[image loading]](https://pbs.twimg.com/media/FTn-pscXEAIjnaq?format=jpg&name=large) And looking at it from a Momentum perspective we see that ARKK is impressively negative on Momentum loading in its holdings. + Show Spoiler + ![[image loading]](https://pbs.twimg.com/media/FTn_W60XEAA0qwF?format=jpg&name=large) | ||
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{CC}StealthBlue
United States41117 Posts
![[image loading]](https://i.redd.it/qvqlxbsux7291.png) | ||
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{CC}StealthBlue
United States41117 Posts
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Hollow
Canada2180 Posts
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3FFA
United States3931 Posts
edit: And now more recently, this blog post from Cliff Asness discusses why Value investing isn't all about tech - https://www.aqr.com/Insights/Perspectives/Value-Investing-Is-Not-All-About-Tech | ||
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{CC}StealthBlue
United States41117 Posts
Tesla Inc. Chief Executive Officer Elon Musk said the electric carmaker needs to cut staff by around 10%, noting he had a “super bad feeling” about the economy, according to an internal email seen by Reuters. The email, titled “pause all hiring worldwide,” was sent to Tesla executives on Thursday, according to the report. Shares of Tesla fell 4.8% at 8:02 a.m. in early New York trading, weighing on the broader US market. Representatives from the automaker didn’t immediately respond to requests for comment Friday. Source | ||
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GoTuNk!
Chile4591 Posts
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{CC}StealthBlue
United States41117 Posts
![[image loading]](https://i.redd.it/90lw4458ol391.png) | ||
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Emnjay808
United States10655 Posts
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mahrgell
Germany3943 Posts
On June 07 2022 04:27 Emnjay808 wrote: Can someone explain to me how a split works like I’m a Golden Retriever? Imagine you have one big piece of meat, and then your man comes and takes your meat and splits it up into goulash. So now you have 5 pieces of meat, but smaller, but they are still exactly the same as your original 1 piece. You didn't have to do anything yourself for this to happen, and it really has no effect on what you have. The only beneficial effect may be that now maybe your poodle friend, who didn't want to try the same meat as you, because it was too big for him, is now maybe giving those smaller sized portions another look. | ||
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