From a quick google ARK seems to be an "innovation ETF".
Does that mean stay away from tech?
For the most part, but especially early-stage negative p/e stocks. Surprisingly, the FAANG stocks aren't nearly as stretched as the rest of tech. AMZN is pretty close to in-line with its historical levels.
Its worth looking into what ARK (specifically, ARKK, the main one), actually holds. Its not really "tech"; its more "tech which is expected to explode". Its far riskier than just your Big Tech AMZN/GOOG/AAPL/etc.
1. Tesla (~9%)
2. Roku (~7%)
3. Teladoc Health Inc (~5%)
4. Square (~5%)
5. Zillow (~3%)
6. etc
A majority of equities are overvalued. You'd have to be asleep to think otherwise. And of the marketable securities that aren't, projected future cash flows are difficult to calculate (sending the discount rate to 0), or when they aren't, growth prospects are very poor.
What's wrong with small caps?
They've just run up so much this year. The Russell 2000 has a negative p/e ratio.