ARKQ ETF

I maintain a hold rating on ARKQ due to mixed technicals, elevated valuation, and historical seasonal trends suggesting potential consolidation. ARKQ's portfolio focuses on innovative, cyclical companies in sectors like Information Technology and Industrials, with significant exposure to growth and value stocks. The ETF's valuation has increased, with a P/E ratio of 33x and a PEG ratio just under 3x, indicating a premium.

It's not hard to see that artificial intelligence, or AI, is a massive opportunity. That's why I want exposure to AI stocks in my portfolio.

I'm planning to put some money to work in the stock market in February, but most of it will be allocated to exchange-traded funds, or ETFs. While I think there are some excellent opportunities in individual stocks right now, there are also some excellent tailwinds and market trends that have made entire industries, sectors, and areas of the market attractive right now.

The S&P 500 produced a total return of about 25% in 2024, the second consecutive year of 20% or higher returns from the benchmark index. That's an impressive rebound from the 2022 bear market lows.

If you don't want to choose individual stocks to invest in AI technology, I can't say I blame you. Of the roughly three dozen individual stocks in my portfolio, I'd call two of them "AI plays.

I'm a big fan of investing in individual stocks and truly believe that a well-crafted stock portfolio can outperform the overall stock market. At the same time, there's value in putting some of your investment dollars on autopilot with top-quality index funds.

Cathie Wood is the head of Ark Investment Management, which operates several funds focused on innovative technology stocks. The Ark Autonomous Technology and Robotics ETF holds a number of Wood's top artificial intelligence (AI) stock picks.

ARKQ was performing well with Tesla's rise, but has remained an underperforming ETF thus far in 2024. The ETF's high valuation and currently weak seasonal trends make it a risky investment today. ARKQ's chart shows potential for a breakout if it rallies through resistance in the $59-$61 range, while support is seen at $50.

I have been dreaming about flying cars since I was a child, watching the cartoon “The Jetsons.” For those old enough to remember, the Jetsons were the cartoon family of the future, and they owned a flying car.