Cathie Wood is optimistic about innovation despite negative 32% returns.

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Cathie Wood, CEO of Ark Invest, has set very exaggerated targets for innovation by 2030.

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The Ark ETF has lost 2.15% compounded annually over the past five years.

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Referring to Cathie, Scott said that money managers who promise 50% returns lack an understanding of their job.

Cathie Wood, Founder, CEO, and Chief Investment Officer of ARK Invest, recently joined an OPTO session to discuss the impact of the convergence of five technology platforms. Over the past three years, Ark Innovation has posted an annual return of minus 32%, and over the past five years it has only posted a return of plus 2%. These returns are not impressive compared to the S&P 500’s positive returns of 10% over three years and 15% over five years.

Cathy Wood’s Predictions

According to Wood, the current exponential era is an era of convergence in which multiple technological innovations mature simultaneously. She said the seeds of all these platforms were planted in the technology and communications bubble that ended 20 years ago and have continued to grow ever since. Now they are ready for their prime.

Cathie Wood’s Ark is one of the worst performing funds, according to the data.

Renowned trader and money manager Scott Stewart suggests that people should consider the source of their information before investing their hard-earned money. He warns against professional money managers who promise future returns. According to Scott, such promises indicate that these managers either don’t understand their job or the market, or are simply trying to fool people.

Referring to Cathie, Scott said that any professional money manager who promises 50% CAGR returns in the future either lacks an understanding of their profession or the market or is just a scammer. It would be wrong to make such a claim because no one can predict the future with such spectacular growth. Unfortunately, many people invest their money based on unrealizable figures.

Ark’s ETFs have had negative returns so far.

There has been no average annual return of 50% over the past five years. In fact, the Ark ETF suffered a compounding loss of 2.15% annually over the past five years. In other words, it suffered a loss of 2% every year. The standard deviation of all of this is over 40%, which is much more volatile than anything around it.

Stewart criticized Cathy Wood, saying that it is unfortunate that people put their money into such a place expecting a 50% return, but end up losing it. People trust famous names and people they see on CNBC and hope for success.

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

summary

Cathie Wood, CEO of Ark Invest, discussed the convergence of five technology platforms during 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, similar to ARK Invest’s promise of 50% per annum.
Amanda Shinoy Amanda Shinoy is one of the few women in the industry who is deeply invested in cryptocurrency. An advocate for increasing the presence of women in the cryptocurrency space, she is known for her accurate technical analysis and price predictions for cryptocurrencies. Readers often await her comments on the next rally. She is a finance professional with an MBA in Finance. She left her job at a top financial institution and now dedicates her time to financial education for the general public.