Cathie Wood has become a household name in the financial world. Being regarded as the greatest stock picker since Warren Buffett, her ARK funds have become some of the most popular ETFs in the stock market. Her style of investing is something that we’ve never seen before, taking positions in hyper-growth stocks that she considers innovative. I mean, have you ever heard of a fund with that popularity that likes Bitcoin and Tesla?
Unfortunately, the market has hated her investing style in the last month. Wood’s flagship ETF, the ARK Innovation, is down nearly 35 percent from its highs, since growth stocks have taken a massive hit in the stock market selloff. She hasn’t been worried about the equity positions, with ARK constantly buying the dips in stocks like Palantir. The rotation to value has encouraged her as she sees innovation on a discount. The main concern has been Bitcoin. Due to a flurry of bad news, Bitcoin has seen a 40 percent drop from its highs, leaving ARK investors puzzled. The future of Bitcoin has certainly been tested in the last few weeks, but Wood revealed her thoughts on Wednesday.
In an interview, Wood restated her belief that Bitcoin will go to 500,000 dollars, which might seem crazy to you. She said that her fund has constantly reviewed their positions, and they feel as confident as ever. In the case of Elon Musk, she believes that Bitcoin will move to renewable technology, which would bring Musk back onto the train. However, she did not say whether Bitcoin would rebound, saying that the markets are very emotional now. It was noted that Wood has been loading up on shares of Coinbase, which solidifies her bull case. Coinbase has also witnessed a correction in its stock price ever since its IPO, which Bitcoin bulls can see as a discount. Wood didn’t have much to say about Tesla, a stock she has been bullish about, but it looks like Musk has it covered with his diamond hands tweet. What do you think about the future of Cathie Wood’s ARK?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.