Interesting Start To 2021 For Cathie Wood And ARK Invest Funds

In 2018 an unknown woman came out and proclaimed Tesla (TSLA) was wildly undervalued when the stock was already trading for many multiples, and at levels, most investors considered grossly overvalued. Flash forward to 2020, and most of what this woman name Cathie Wood had proclaimed years prior about Tesla's stock came true.

Back then, Wood's said Tesla would be worth $4,000 per share or a market value of $672 billion; this is when the company was worth $56 billion. Cathie has been proven right about her call on Tesla and has gained massive notoriety because of this bold prediction in 2018. However, her Ark Invest funds have been performing incredibly well even before her Tesla prediction came true as three of her funds, the ARK Next Generation Internet ETF (ARKW), the ARK Innovation ETF (ARKK), and the ARK Genomic Revolution ETF (ARKG) are all in the top ten best performing Exchange Traded Funds over the last five years.

The Tesla prediction coming true, combined with easy access to average investors through Exchange Traded Funds and incredible overall fund performance, has now made Cathie Wood one of, if not the hottest investors to follow, both from a media standpoint and an investment standpoint.

ARK Invests fund inflows have been nothing more than spectacular in 2021, with two of the company's seven funds making the top ten list of most cash inflows. The ARKK fund saw $5.75 billion flow into the fund, making it the ETF with the fourth-highest fund inflows since the start of 2021. ARKG had a $3.68 billion flow into the fund, making it the ninth highest ETF in terms of fund inflows. This is another clear signal that Cathie Wood and her ARK Invest family of ETFs is very popular with investors at this time. Continue reading "Interesting Start To 2021 For Cathie Wood And ARK Invest Funds"

Your ETFs Are At Risk If US Delist Chinese Stocks

At the beginning of January, the drama of delisting certain Chinese stocks controlled the headlines for a few days. Then, as we all know, other more newsworthy stories occurred, and we all forgot about the delisting of Chinese stocks due to 'national security' concerns.

Several different stocks were being thrown around as possibly being delisted in the future, which could affect you even if you don't own any individual Chinese stocks or Chinese-focused ETFs.

The delisting occurred as a way to 'protect' the national security of the United States against China. So, the main focus of the delisted stocks were those of military importance to the Chinese government. Most of the stocks on this list the average investors would have never heard of before. But, there were three telecommunications companies thrown on the list that some investors may have heard of. However, still very unlikely you would be holding them individually or through a non-Chinese-focused ETF.

However, two Chinese stocks, in particular, are a part of a vast number of popular ETFs in the US. The companies are JD.com (JD) and Alibaba Group Holding (BABA). For whatever reason, these two stocks were and still to an extent being considered as possible additions to the delisting list. Continue reading "Your ETFs Are At Risk If US Delist Chinese Stocks"

General Motors Announcement Changes Everything

We all know Tesla (TSLA) is a run-away train, but what if I told you General Motors (GM) could soon be not only chasing down Elon Musk but maybe passing him?

OK, all of the Tesla fanatics need to take a deep breath and calm down. The thinking that another “car” company could pass Tesla is not a negative comment against Tesla; it’s the reality that we are now living in a world where electric and other alternative energy vehicles are not “pipe” dreams but reality.

The late January announcement from General Motors that they will no longer sell internal combustion engine vehicles in the United States by 2035 is the writing on the wall that gasoline is ending and EV’s will dominate the road. In 2020 Tesla delivered 499,550 vehicles, which shows that we have demand for EVs even now. Perhaps not like the demand that GM still has for gasoline-powered vehicles. GM sold 7.7 million in 2019, down from the 8.3 million it had sold in 2018 and way off its high of just over 10 million in 2016. These are worldwide sales figures, but regardless GM sold 2.5 million vehicles in the US in 2020.

What’s the point of these figures? Continue reading "General Motors Announcement Changes Everything"

New President, New Investment Decisions!

It is said that the first 100 days of a new Presidents term are potentially the most important days of their time in office. This is because, during that first 100 days, they are making all sorts of new policy changes, appointing people to positions, and generally laying out an outline of what they will try to accomplish in the coming years.

Thus far, President Joe Biden has been no different from any President before him. He has written new executive orders, made appointments, and allowed certain arms of the Federal government to have 'more' control of certain things. President Biden's actions have in some small and some large ways already affected your money.

Let's talk about a few things the President has done and how your money has been affected.

To me, one significant move President Biden has taken was appointing former Federal Reserve Chairwoman, Janet Yellen, to the Secretary of the Treasury. This appointment to me instilled faith, trust, and a lean toward dovish economic policies in the near term as the country continues to get past the economic effects of the Covid-19 pandemic. This has probably given your portfolio as a whole a mild boost higher.

More recently, the Biden administration has, in others words, 'taken the handcuffs' off the CDC. It was reported that under the Trump administration, the CDC was 'hushed' and dealt with push-back about certain recommendations they wanted to implement during the pandemic. Now that Biden is in office, the CDC quickly announced orders that required masks to be worn on all forms of public transportation, which the Trump administration apparently did not allow. More so than that, the CDC reported that it was investigating requiring a negative Covid-19 test before allowing any passenger board any domestic flight. Continue reading "New President, New Investment Decisions!"

Top Performing ETFs Of 2020

Despite the major market crash in March, all of the major indexes ended 2020 in the green. The S&P 500 (SP500) ending the year up 16.27%, the Dow Jones Industrial Average (DJI) rose 5.58%, and the NASDAQ (COMP) increased by 43.64% in 2020. While at times it felt as if there was a major disconnect with the economy and the stock market, and it still does to an extent, most of the year, it felt like no matter what you were invested in; you were making money. But, while not all stocks increased the same amount, the same is true about ETFs. Some funds, like stocks, did better than others.

When you look back at the year now, did you match market returns, fall behind, or where you invested in stocks and ETFs that beat the averages? Let’s take a look at the top five best performing ETFs of 2020 in a number of different categories the average investor has to choose from.

The following table shows the performance of the top five best performing ETFs in 2020, as well as their performance over the last month, the last three months, the last five and ten years. (All figures quoted are based on the December 31st, 2020 closing price. Five- and ten-year periods are annualized when available.)

ETF

The following table shows the performance of the top five Non-Leveraged ETFs in 2020 and their performance over the last month, the last three months, the last five and ten years. Continue reading "Top Performing ETFs Of 2020"