One of our core mantras at Nanalyze is that if 95% of professional investment managers can’t beat a broad market benchmark, it’s highly, highly unlikely that an all-night session of LMGTFY will lead you to the next Microsoft or Google. Indeed, a recent study that looked at the performance of more than 64,000 global stocks between January 1990 and December 2020 found that more than half underperformed one-month U.S. Treasury bills in terms of compound returns. If that’s not enough to drive you into going all-in on vino investing: Just 2.4% of stocks accounted for all of the $75 trillion in net global stock market wealth over those 30 years.
A Brief History of the ARKK Effect
That brings us to professional investment manager Cathie “Risk is my Shtick” Wood, founder and CEO of Ark Invest, an investment management firm that in recent years played kingmaker among tech stocks until the kingdom fell into ruin this year. As we’ve noted previously, Ark Invest has an almost insatiable appetite for risk. Nobody complained when the firm’s flagship exchange traded fund (ETF), ARK Innovation ETF (ARKK), provided investors with triple-digit returns during the height of the pandemic. On the flip side, this year’s slide in the tech sector has sent ARKK and its sister EFTs into a tailspin