I’ve been taking a look at some of the ARK etfs which have had insane returns. Looking at the holdings, though, the companies seem to be, for lack of a better term, all meme stocks. I wouldn’t mind ARKG because I don’t have much healthcare exposure currently but the top 5 holdings haven’t had a net profit in a good while. I’d imagine this would hold true for the rest of the holdings too.
Is this concerning to anyone? The returns might be insane but it comes with risk and I can’t quite understand the logic behind the growth of these stocks. I’d assume these funds would be hit hard with the eventual correction but it could be years before we see another one.
Submitted December 08, 2020 at 11:54PM by Cocainefanatic https://ift.tt/2VXzNW9
