Cathie Wood says growth stocks will outperform as bear market ends, adds to streaming play Friday

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Ark Invest's Cathie Wood said growth stocks should soon take the leadership in the market as the downturn runs its course.

"Typically growth stocks will outperform as we move towards the end of a bear market and of a recession because they are the new leadership," Wood said on CNBC's "The Tech Trade Special" Friday. Wood's disruptive technology darlings have been among the biggest losers this year in the face of rising rates. Her flagship active fund Ark Innovation ETF is off 52% year to date with its big holdings like Roku tumbling 70% this year.

Wood believes the central bank could be making a policy mistake by raising rates aggressively as inflation starts to peak. She previously said the Fed will be forced to make a policy reversal due to deflationary forces. "Within the next year, the Fed will relax its policy," Wood said. "The recession might be sustained if it continues to raise rates and the yield curve continues to invert.

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