Cathie Wood Bullish on Innovation Despite a Negative 32% Return

Cathie Wood, the Founder, CEO, and Chief Investment Officer of ARK Invest, recently participated in a discussion with OPTO Sessions on the impact of the convergence of five technological platforms. Over the past three years, Ark Innovation has returned a negative 32% annually, and over the past five years, it has returned only a positive 2%. These returns are not impressive when compared to the S&P 500, which has shown positive returns of 10% over three years and 15% over five years. 

Cathie Wood’s Prediction

According to Wood, the current exponential age is a period of convergence between several different technological breakthroughs, all of which are maturing at the same time. She stated that the seeds for all of these platforms were planted in the tech and telecom bubble that ended 20 years ago, and they have been growing ever since. Now, they are ready for prime time.

Data Shows Cathie Wood’s Ark Is Among The Worst Performing Funds

Scott Stewart, a well-known trader and wealth manager, suggests that people should consider the source of information before investing their hard-earned money. He warns against professional money managers who make promises about future returns. According to Scott, such promises indicate that these managers do not understand their job or the market, or they are simply trying to deceive people. 

Scott brought up Cathie, stating that any professional money manager who promises a rate of return of 50% CAGR in the future either lacks understanding of their job or the market or is just a swindler. It’s just wrong to make such claims because no one can predict the future with such outstanding growth. Unfortunately, many people invest their money based on figures that are simply not feasible. 

Ark’s ETF Has Given Negative Returns So Far

50% per year rates of return were not the case in the last five years. In fact, the Ark ETF suffered a loss of 2.15% compounded every year over the last five years, meaning it lost 2% every year. All this with a standard deviation of more than 40% which is way more volatile than anything nearby.

Stewart blasted Cathie Wood saying that it’s unfortunate that people put their money in such places, hoping to make 50% returns, only to end up losing money. People put their trust in famous names or people they see on CNBC, hoping for success. 

Scott points out that many people invest their money based on the popularity of the figurehead or the famous personality, hoping to achieve success. However, he emphasized that such an approach could be risky and lead to losses. 

Summary

Cathie Wood, the CEO of Ark Invest discussed the convergence of five technological platforms in a recent OPTO Session. ARK Invest’s returns have been negative over the past three years and only slightly positive over the past five years. Scott Stewart advises caution when investing and warns against trusting managers who promise high returns, as was the case with ARK Invest’s promise of 50% per year.

Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.