When the ARKK Is Full - Why most money floods into assets at inopportune times.

AlanP_2

Picked this up from a discussion on Citywire, and thought it made for an interesting read that has lessons for many of us.

https://www.youngmoney.co/p/arkk-full

GazzaBloom

It's a story as old as the stock market itself. We are creatures of bad habit.

So what's the moral of the story? Ignore the news? regularly buy a broadly diversified portfolio through decades?

AlanP_2

Or, go totally contrarian and buy all those unloved sectors ready for their day in the sun?

It isn't new news I know but does really highlight how fashion drives investments.

The main takeaway for me was the observation about mainstream media / TV. Once they are talking about ARK / SMT etc. on the evening news its time to sell.

bostonerimus

Who is the author of this article and why should we take any notice? Any article that starts with "Peter Lynch" is off to a bad start IMO.

I never bought ARKK, or Woodford for that matter, because I just buy index trackers for the long haul. It's not original or exciting or the "best" solution if we look back, but it'd good enough - as was Magellan's 7%.

InvesterJones

Stocks yes, but isn't that the reason funds exist so their managers are making the decisions about what stock to buy next rather than fund investors? I buy funds based on their investment objectives, not solely on what their holdings are at any given point in time.

AlanP_2

bostonerimus said:

Who is the author of this article and why should we take any notice? Any article that starts with "Peter Lynch" is off to a bad start IMO.

I never bought ARKK, or Woodford for that matter, because I just buy index trackers for the long haul. It's not original or exciting or the "best" solution if we look back, but it'd good enough - as was Magellan's 7%.

No idea who the author is.

You don't have to take any notice - its a free country (even the USA).

As for your last paragraph, sounds like the article should resonate with you then.

Albermarle

Beating the Street by Peter Lynch (goodreads.com)

The story is usually put more briefly as ' when your taxi driver is tipping a stock, it is time to sell '

Perhaps best not to mention B**c**n at this point .

bostonerimus

AlanP_2 said:

bostonerimus said:

Who is the author of this article and why should we take any notice? Any article that starts with "Peter Lynch" is off to a bad start IMO.

I never bought ARKK, or Woodford for that matter, because I just buy index trackers for the long haul. It's not original or exciting or the "best" solution if we look back, but it'd good enough - as was Magellan's 7%.

No idea who the author is.

You don't have to take any notice - its a free country (even the USA).

As for your last paragraph, sounds like the article should resonate with you then.

I would argue with you on the "free country even the USA" thing if I was a pregnant woman in Texas and wanted an abortion.
My point about the article is that anyone can put something up online - heck, look at this forum.

AlanP_2

bostonerimus said:

AlanP_2 said:

bostonerimus said:

Who is the author of this article and why should we take any notice? Any article that starts with "Peter Lynch" is off to a bad start IMO.

I never bought ARKK, or Woodford for that matter, because I just buy index trackers for the long haul. It's not original or exciting or the "best" solution if we look back, but it'd good enough - as was Magellan's 7%.

No idea who the author is.

You don't have to take any notice - its a free country (even the USA).

As for your last paragraph, sounds like the article should resonate with you then.

I would argue with you on the "free country even the USA" thing if I was a pregnant woman in Texas and wanted an abortion.
My point about the article is that anyone can put something up online - heck, look at this forum.

😉 Was being a bit tongue in cheek re free country and USA.

I agree anybody can post anything, but that doesn't mean it isn't worth reading and considering. 

valiant24

AlanP_2 said:

Or, go totally contrarian and buy all those unloved sectors ready for their day in the sun?

Per John Kay this is what you'd do, lots of trackers and a few contrarian funds.

Which are the contrarian sectors at present?   Banks, agriculture and travel maybe?

bostonerimus

AlanP_2 said:

bostonerimus said:

AlanP_2 said:

bostonerimus said:

Who is the author of this article and why should we take any notice? Any article that starts with "Peter Lynch" is off to a bad start IMO.

I never bought ARKK, or Woodford for that matter, because I just buy index trackers for the long haul. It's not original or exciting or the "best" solution if we look back, but it'd good enough - as was Magellan's 7%.

No idea who the author is.

You don't have to take any notice - its a free country (even the USA).

As for your last paragraph, sounds like the article should resonate with you then.

I would argue with you on the "free country even the USA" thing if I was a pregnant woman in Texas and wanted an abortion.
My point about the article is that anyone can put something up online - heck, look at this forum.

😉 Was being a bit tongue in cheek re free country and USA.

I agree anybody can post anything, but that doesn't mean it isn't worth reading and considering. 

re the USA, the sad thing is, I wasn't being tongue in cheek.