Cathie Wood Doubles Down ๐Ÿ“‰

Table of Contents

Cathie Wood Doubles Down

On Monday, Ark Investment Management founder and CEO Cathie Wood appeared in an interview on CNBC and Bloomberg. As many investors already know, Cathie Wood’s fund manages five ETFs focusing on disruptive innovation. Last year, Ark’s flagship fund focusing on disruptive innovation โ€” Ark’s Innovation ETF โ€” gained nearly 150%. However, this year Ark’s Innovation ETF has fallen more than 11%.

Technology stocks have been relatively weak recently, fueled by rising interest rates and fears of inflation. During the interview, Wood gave her opinion on the market’s current conditions and gave investors an update on the state of Ark’s disruptive strategies amid the big tech sell-off.

Wood essentially said investors knew interest rates were never going to stay this low โ€” the market never priced in 0.5%, 1% or 1.5% 10-year Treasury yields.ย  As the economic recovery from the pandemic continued, interest rates would start to rise again. Wood then mentioned she believes the speed at which interest rates rose was unexpected, scaring investors who borrowed money at low-interest rates to invest in high-growth companies.

Investors are now pulling money from high-growth companies like tech stocks and are putting their money into value stocks. Cathie Wood calls this a broadening out of the bull market and says it is good news for Ark’s disruptive strategy in the long run. She said, “We are becoming more and more optimistic about our portfolios in this sell-off.”

The Ark Innovation ETF has fallen more than 30% from its most recent high, but the plunge isn’t scaring Cathie Wood โ€” she’s doubling down.

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.

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visaยฎ Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.