How Many Five-Year Time Horizons Does It Take?

Cathie Wood is the poster child for this bear market's ongoing "tech wreck"... And regular readers know we love to call out inconsistencies when we see them. [Chaikin PowerFeed]( How Many Five-Year Time Horizons Does It Take? By Pete Carmasino, chief investment strategist, Chaikin Analytics Cathie Wood is the poster child for [this bear market's ongoing "tech wreck"](... And regular readers know we love to call out inconsistencies when we see them. But we do it for good reason... Wood founded ARK Investment Management back in 2014. Her company's suite of exchange-traded funds ("ETFs") all seek to capitalize on "disruptive innovation." However, they've performed terribly for almost two straight years... For example, the company's flagship ARK Innovation Fund (ARKK) is down about 80% from its February 2021 peak. And this week, the ETF plunged to its lowest point since August 2017. That's notable for a simple reason... It was more than five years ago. Today, I'll show you why that's a significant milestone. And then, I'll introduce you to a better spokesperson for your investments... Recommended Links: [Move Your Money by January 1!]( Wall Street legend Marc Chaikin has found nine of the 10 best-performing stocks every year for the past seven years. And now, for the first time ever, he's revealing exactly where to move your money before 2023. [Click here for Marc Chaikin's 2023 Roadmap](. [What I Told the Pentagon Last Week]( While everyone's worried about inflation, cryptocurrencies, and a looming recession, professor and forensic accountant Joel Litman just delivered an even more surprising warning when he met with top military brass at the Pentagon days ago. [Here's what Joel thinks you should really worry about today](. Wood's ETFs have lost an incredible amount of shareholder value over the past 22 months. And yet, unsuspecting investors still entrust her with billions of dollars... For example, ARKK currently has around $7 billion in assets under management. As ARK Invest's ETFs continue to bleed value, Wood is once again doing damage control... She's making the rounds in the financial media, continuing to preach about the long term. And she's staying active on Twitter as well. In fact, Wood posted this message yesterday... The world today appears to be run by the "profitless tech" companies of the past. ARK invests in companies that we believe will change the world [and] generate extraordinary cashflow at scale, not mature companies catering to short-term investors. Every time Wood speaks, she regurgitates the message about "companies that... will change the world" or tells folks not to worry. She loves to cite a five-year time horizon. Now, I think that five years is a reasonable time frame for investors. And that's especially true for the type of innovative companies that Wood and ARK Invest seek for their ETFs. However, I can't help but ask... when is five years only five years? If a seasoned investment manager tells you their preferred investment time frame is five years, you might be willing to go along for the ride. But when does the five-year clock start? For investors in ARKK, the past five years have been a waste. Take a look... [Chaikin PowerFeed] Back in December 2017, ARKK traded for roughly $38 per share. Today, it's trading for around $32.25 per share. That's a 15% loss over Wood's beloved five-year time horizon. When you look at the opportunity cost over this five-year span, it's even worse... Heck, even after factoring in the COVID-19 panic in 2020 and a miserable 2022, the S&P 500 Index has still returned more than 40% in the past five years. And the tech-heavy Nasdaq Composite Index is up more than 50% over the same period. Meanwhile, ARKK's managers failed to deliver any returns with baskets of so-called "disruptive innovators." How can we believe ARKK will shine over the next five years with the economy on the verge of a recession? Interest rates are much higher than they were five years ago, too. My point is simple... We simply can't rely on fund managers like Wood "talking their own book." We don't have an endless parade of five-year time horizons to wait around and hope for good returns. Investors who bought into ARKK in 2017 and never sold are sitting on a 15% loss today. Regardless of the companies that ARKK researches and invests in, we still need to pay attention to the trend. And today, the trend remains negative – especially in this space. We know that's the case because we have the Power Gauge at our side. The Power Gauge first downgraded ARKK to "neutral" around its February 2021 peak. And it has stayed consistently in the "neutral" or "bearish" ranges over the past 22 months. Don't believe the hype from Wood until the technical indicators start to tell a similar story. Instead, let the Power Gauge be your spokesperson. Good investing, Pete Carmasino Editor's note: Chaikin Analytics founder Marc Chaikin has used the Power Gauge to chart nearly every twist and turn in U.S. stocks this year. Now, he's setting his sights on 2023... In fact, Marc just put together an urgent briefing about what you can expect. In short, he says you now have a very narrow window to make financial decisions that will dictate your entire year to come. And as an added bonus, Marc gives away the names and ticker symbols of what he believes will be next year's best- and worst-performing stocks. [Click here for the full details](. Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.30% 9 19 2 S&P 500 +0.10% 111 268 119 Nasdaq -0.08% 23 54 23 Small Caps +0.47% 444 975 471 Bonds -1.78% Energy +1.51% 1 16 6 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain somewhat Bearish. Major indexes are mixed. * * * * Top Movers Gainers [rating] MRNA +5.94% [rating] NEM +4.43% [rating] SLB +3.87% [rating] HAL +3.77% [rating] GE +2.91% Losers [rating] TSLA -8.05% [rating] FDS -5.39% [rating] GIS -4.58% [rating] VFC -3.38% [rating] UPS -2.69% * * * * Earnings Report Reporting Today Rating Before Open After Close CTAS MU, RJF CCL No earnings reporting today. Earnings Surprises [rating] NKE NIKE, Inc. Q2 $0.85 Beat by $0.20 [rating] FDX FedEx Corporation Q2 $3.18 Beat by $0.36 [rating] FDS FactSet Research Systems Inc. Q1 $3.99 Beat by $0.36 [rating] GIS General Mills, Inc. Q2 $1.10 Beat by $0.04 * * * * Sector Tracker Sector movement over the last 5 days Energy -1.98% Staples -3.08% Industrials -3.87% Health Care -3.89% Utilities -4.16% Financial -4.39% Materials -5.70% Communication -6.99% Discretionary -7.09% Information Technology -7.20% Real Estate -7.37% * * * * Industry Focus Dow Jones REIT Services 0 32 80 Over the past 6 months, the Dow Jones REIT subsector (RWR) has underperformed the S&P 500 by -7.31%. Its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #21 of 21 subsectors. Indicative Stocks [rating] SLG SL Green Realty Corp [rating] NTST NETSTREIT Corp. [rating] HR Healthcare Realty Tr * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. For questions about your account or to speak with customer service, call [+1 (877) 697-6783 (U.S.)](tel:18776976783), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2022 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. [www.chaikinanalytics.com.]( Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.