This implies that there is some overarching strategy to the ARK funds. Cathie Wood just seems all over the place with her investment choices. They grew astronomically because everything grew like crazy since the pandemic. I'm not sure that's some sort of ringing endorsement. If you look at ARKK performance last year as a whole, they underperformed the market as a whole by a wide margin. Credit to her for betting on Tesla and doing well on it but that to me isn't the sign of some well managed fund. She's made a lot of bizarre choices and seems to always have cash flow problems when the market takes a downward turn.
lol. I'm just saying it doesn't apply as generally as you stated. Case-in-point would be the dotcom bubble where many of those stocks no longer exist. There is also an opportunity cost associated with holding stuff that tanks 20%, 40%, 60%, etc. because while you wait for a 100% increase to recover from a 50% drop and break even, there are other stocks out there moving up. I'm a buy and hold guy and have been holding stocks for over a decade and reinvesting dividends, but I've also been through massive downturns in overvalued/overpriced stocks during the dotcom bubble. A lot of stocks that skyrocketed the last couple of years probably won't see those levels again for quite some time or ever (as in, they'll go bye-bye). There were people "buying the dip" and they just kept on dipping. A comparison to Cathie Woods' funds from the dotcom bubble would be funds like the Janus funds. From looking it up, JAGTX (global technology) was a $40 fund around the time of the collapse back in 2000 and had something like a 100-150% return (unheard of for a mutual fund). It tanked. If you hung onto it, it would've taken you 20 years to get back to those prices, and hey, now you're in the profit almost a quarter-century later. I learned my lesson because I had a 90-100% return on that thing and held onto it as it tanked because they were saying the same things back then -- "new economy... just hold onto it... it'll be back in the future". Cathie has a good reputation in the industry, but her stock picking for her funds seems like a case of "buy whatever's hot and pray for the best 20 years down the road". Who knows. It may work. It would depend on which of the menagerie of stocks in each of her funds actually come through and/or recover because not all of them will. I may look into eventually buy something of hers, too, but they're so tech-heavy and moon-shot type stocks, they scare me.
Ha I just put 10k into an I-bond as well. First time ever using those things. But 7.12 percent interest is nothing to scoff at considering how volatile the market is.
lol. Well, it is for the next 3 months or so, anyway... The only thing I hate is that it's only a max of 10k a year for single filers, I think.
If I understand correctly, you get 6 months of the current interest rate guaranteed. So while the rate will reset in 3 months, you're locked into the current rate for 6 months after buying. Also you can buy another 5000 as part of your tax return. Look up Form 8888. You basically can allocate part or all of your refund (up to $5000) towards an I-Bond purchase. The only downside is that these I-bonds are physical paper bonds.
You are correct about the 6 months. If you buy now, your rate won't change until July, I think. I meant it'll probably be the current rate for another 3 months or so when the rate resets (if you want to get into an initial purchase). We'll see. I knew you could do another $5000 in paper bonds, but didn't know that was in addition to $10000 electronically. If I can dump another $5000 into one during tax time, I may do that. I'll have to look. I just thought the max you could buy was $10000 and if you want to buy paper bonds, it would be a max of $5000 of the $10000 -- the rest would have to be electronic. Thx.
Yup the paper bonds from the tax return don't count against the $10000 cap on electronic bonds. So in reality, you get $15000 a year (provided you have a tax refund).
