We went full-on #BOP (bullish, optimistic, positive) with your 2022 Bold predictions…
And then the market tanked.
Sometimes we need Strong Hands too! And really, nothing has changed.
Yeah, these price moves have some people on edge, but we’ve shown you that it’s the growth that matters!
And volatility is a normal function of the market.
One subscriber wrote in to ask:
Hello, I read Mr. Daniel Shifflett’s article regarding a price target of $250 for the ARKK ETF. Does he still believe it can rally to this target level by end of the year? I’d love to hear his reasoning behind this bold projection.
I myself have estimated a $200 target for the fund by end of the year and created a massive call option position. I look forward to a response. Also, I look forward to subscribing to the Banyan Hill.
Thank you for your question Hardy!
I am sure others also have the same question. (Remember, you can submit yours — the good, the bad, the spicy — at BoldProfits@BanyanHill.com!)
So let’s dive in.
ARKK Prediction Update
The ARK Innovation ETF (NYSE: ARKK) is like our America 2.0 ETF.
Right now, ARKK is trading at $73 per share and has just over $12 billion under management.
Last year, ARKK reached its all-time high of nearly $160 per share with $28 billion under management.
As you can see, ARKK does not trade as a typical slow-moving ETF.
As fast as ARKK dropped from its all-time high, it can slingshot right back up.
And I’m standing by my ARKK prediction that it will reach a price target of $250 by the end of 2022.
That’s about a 250% increase from today’s price.
Here’s why I’m still #BOP.
ARKK contains innovative companies that are being adopted and implemented right here and right now. And they’re doing exactly what we want them to do — grow!
Some America 2.0 examples include:
No. 1: Tesla Inc. (Nasdaq: TSLA) is the number one holding in ARKK.
TSLA reported 53.8 billion in total revenue in 2021. A 70% increase from 2020.
I believe we will continue seeing that number grow.
The electric vehicle (EV) market is just beginning to boom. With the prices of gas-powered vehicles increasing, as well as gas itself, I believe more people will be buying Teslas.
The maintenance and upkeep on a Tesla are far cheaper and easier than a gas-powered vehicle.
No. 2: Teladoc Health Inc. (NYSE: TDOC) is currently the third-largest holding in ARKK.
Teladoc has changed the way we can access and utilize health care. Without even leaving your house, you can meet with a doctor and be treated for various ailments.
Over 82% of consumers say telehealth is equal to or better than in-person appointments.
TDOC has estimated it will have revenues of just over $2 billion in 2021 but is projected to have revenue of $2.6 billion in 2022 — a 30% increase.
No. 3: Coinbase Global Inc. (Nasdaq: COIN) is another top holding in ARKK.
Coinbase has 73 million users in over 100 countries.
As cryptocurrency and bitcoin become adopted as we believe they will be, COIN will play a huge role in where people can buy, sell, hold and trade crypto.
COIN has even partnered with TurboTax so people can receive their tax returns in crypto.
COIN is estimated to have $7 billion in revenue this year and is projected to continue to grow.
ARKK is holding 44 companies that are similar to the three above. These are industry leaders and are revolutionizing their respective sectors.
Volatility also equals opportunity. Many growth stocks are trading at a discount. And that means you can build up your America 2.0 portfolio.
Tesla (TSLA). ✔️
Teladoc (TDOC). ✔️
Coinbase (COIN). ✔️
We consider these leaders in their sectors, but there are so many more. ARKK is a great ETF that will let you gain exposure…
But if you’re ready to be BOLD, we have direct stock recommendations for 2022 and beyond. Click here for the details now.
From medicine, space, 3D printing, entertainment, technology, shopping and much more … ARKK is filled with huge-growth and high-potential companies that people and businesses use every single day.
Volatility Explained & Action for 2022
You know growth stocks have taken a beating this year. ARKK was no exception. But, here is my take on it.
ARKK had a tremendous year from 2020-2021, rising over 200%.
Investors realized that this is where you want your money to be if you want to invest in the future.
However, shortly after this huge run-up, we had a slight pullback. Then, we were hearing rumblings about inflation and an increase in interest rates.
This news caused money to flow out of ARKK and into value stocks.
On top of that, ARKK was being shorted. Currently, ARKK has nearly a 17% short interest. Short interest can be used as an indicator of market sentiment.
And the indicator was pessimistic.
That caused a huge amount of selling pressure driving ARKK’s price straight into the ground.
But here’s the good news.
You’ve heard this before: Buy low, sell high.
Well, now is your chance. ARKK is trading at a discount!
I believe once inflation fears pass and interest rates aren’t raised (and may actually go negative according to Paul), bidders will come buy back into ARKK as they did before in early 2021.
I don’t recommend waiting for everyone else to realize this. You have the opportunity to buy in low and earn bragging rights as it rebounds to new highs.
I am #BOP on ARKK and believe we will see a $250 price by the end of 2022.
If you have Strong Hands and you’re a Bold Profits investor, here’s your action to take:
Follow the Rules of the Game and Buy ARK Innovation ETF (NYSE: ARKK).
Investment Analyst, Bold Profits Publishing