Cathie Wood predicts deflationary trends to continue

Ark Invest founder and CEO Cathie Wood doubled down on disruptive innovation stocks and predicted deflationary trends will continue into next year.

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She said “Innovation trends like electric vehicles, artificial intelligence, gene sequencing and blockchain technology are all highly deflationary”.

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Innovation market currently holds $7 trillion in market capitalization but she estimates it to be $210 trillion by 2030.

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Wood added that she has invested in disruptive technology and growth companies despite big losses for her fund this year.

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Surging nearly 150% in 2020, her flagship ARK Innovation fund fell 24% in 2021 while the S&P 500 was up 27%.

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Wood also explained how Ark has responded to this year's market turmoil by focusing its portfolio on "highest conviction stocks."

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She believes that fund will once again outperform the market once high inflation and Federal Reserve’s rate increase subsides.

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