Ark Invest's Cathie Wood said rapid interest rate hikes over the past year are now starting to hit cyclical pockets of the market, extending beyond her strategy to invest in companies offering what she calls disruptive technology. "The valuation hit ...has been so severe to our strategy ,...and that was all related to the Fed jacking up interest rates 19 fold in less than a year. Unprecedented," Wood said on CNBC's " Squawk on the Street " Tuesday.
mountain Ark Innovation ETF The widely followed investor said economically sensitive stocks, which have fared better in the face of rising rates, could soon begin to feel the pain from an economic slowdown and possible U.S. recession. "It's like an earthquake, not just for our strategy, actually. We now think the earthquake is rolling off of our strategy and into other strategies and those that are cyclical," Wood said.
has rebounded nearly 27% this year, led by the comeback in holdings such as Tesla, Coinbase, Roku and Roblox.
Sounds like she had a highly leverage strategy! 🤭
so what was she thinking when they were printing free money and the Inflation was keep going up?
The Fed has the banks on the brink of systemic collapse. Time for them to realize their mistake raising rates way too fast, way too far. They need to decrease rates 50 bps but nobody wants to go public with them.
Why is she still relevant? She had a good run w/ $TSLA but that was over a long time ago.