"Today we have investors doing the opposite of what they did in the late '90s. They are running for the hills. It's risk-off because of inflation and interest rates. And the hills are their benchmarks. They are running to the past," Wood said.
"If we are right and the disruptive innovation that is evolving is going to disintermediate and disrupt the traditional world order, those benchmarks are where the risk is. Not our portfolios," she added. Despite the big underperformance, her ARKK has attracted more than $70 million in net inflows year to date, according to FactSet.
The innovation investor said she believes the inflationary drag on growth stocks will end ultimately and that deflationary forces will return. "A lot of what's going on is supply chain related," Wood said. "I do think the deflationary forces building in the economy are pretty strong."
CathieDWood ScottWapnerCNBC There is VERY little innovation in any of the stocks they hold. All they did was chase high PE stocks higher. If she was around in 2000 she should know 90% of the stocks she owns are ever going back to their highs and 50% will be out of business in 5 years.
CathieDWood ScottWapnerCNBC “Obvious prospects for physical growth in a business do not translate into obvious profits for investors.”
CathieDWood ScottWapnerCNBC I recall many like her during the dotcom craze who led many to financial ruin.
CathieDWood ScottWapnerCNBC CathieWood needs to partner with me. Picking the right stocks is only half the battle. You also need to know how to manage the portfolio. She messed up on the latter part. ARKK should have gone into cash much sooner. ARKInvest I should be able to take on deposits this April.
CathieDWood ScottWapnerCNBC She'll make a good call eventually as long as investors keep funding her and have many years of life to live to one day hopefully see a profit. As they say even a broken clock is right twice a day.
CathieDWood ScottWapnerCNBC It was clear that 100 P/E would end in tears.
CathieDWood ScottWapnerCNBC Thinking about all these retail investors that got into it thanks to never ending coverage of her fund.
CathieDWood ScottWapnerCNBC She also clowned CNBC yesterday on Twitter which was my favorite part. 🤣
CathieDWood ScottWapnerCNBC LOL Her portfolio is probably going to drop another 20%. All way overvalued. $TSLA $150