• 1.13K
  • 110
  • 1

Cathie Wood Sees Early Signs Of Bear Market Ending, Stands By Favorite Growth Stock Picks

Benzinga2022-07-31

ZINGER KEY POINTS

  • Ark's Innovation fund bottomed in mid-May before the Nasdaq and S&P did, Cathie Wood Says
  • "That was an early signal that we might be turning the corner here," Wood adds
  • She is optimistic about Roku, Teladoc, Shopify and Coinbase despite their recent declines

Ark Invest founder Cathie Wood seems to think the market is approaching a bottom and growth stocks would lead a recovery, the fund manager told CNBC’s Tech Trade Special Friday.

“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,” she reportedly said.

After peaking late last year, the broader market has been on a secular downtrend. But since mid-June, stocks have shown signs of reversing course. A bear market is technically defined as a decline of over 20% from a recent high.

Wood said, on an intraday basis the fund’s flagship ETF - ARK Innovation ETF (ARKK), bottomed on May 12.

“We actually bottomed before the Nasdaq and the S&P did,” the fund manager said.

“That was an early signal that we might be turning the corner here,” she added.

Innovation investors, Wood said, have been calling for a recession for some time now, primarily due to excess inventories. The earnings season thus far has made it obvious that the “downturn is upon us,” she said.

The fund manager sees the Federal Reserve beginning to relax monetary policy next year.

“The recession might be sustained if it continues to raise rates and the yield curve continues to invert,” she said.

Wood also discussed some of her favorite stocks:

Roku, Inc.: Wood calls the company a “play on the move from linear TV to digital TV, streaming technology”

Coinbase Global, Inc.: The fund manager said the recent trimming of stake was to raise cash to buy Canadian e-commerce company Shopify, Inc. the same day. She said she is long-term bullish on Coinbase and shrugged off regulatory risk as overblown.

Teladoc, Inc. & Shopify: Wood noted that she capitalized on the recent earnings-induced dips and bought Teladoc and Shopify.

ARKK closed Friday’s session down 2.27% at $45.13, according toBenzinga Pro data.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment110

  • Moonshot
    ·2022-08-01
    Still believe in Cathie the soothsayer? [LOL] [Facepalm] 
    Reply
    Report
  • 喜慶吉祥好運
    ·2022-08-01
    Ok🤗
    Reply
    Report
  • paul55555
    ·2022-08-01
    Fingers crossed 
    Reply
    Report
  • THN
    ·2022-08-01
    Cathie Wood, hope u r right. My investment in yourETFs, all down at least 67% 🤦🏻‍♀️
    Reply
    Report
  • Sphere
    ·2022-08-01
    One hit wonder
    Reply
    Report
  • ND80
    ·2022-08-01
    K
    Reply
    Report
  • Jess261
    ·2022-08-01
    Okay
    Reply
    Report
  • Ahkheng
    ·2022-08-01
    Oh no... 
    Reply
    Report
  • Rabbit63
    ·2022-08-01
    Pls like
    Reply
    Report
  • Worpeng2002
    ·2022-08-01
    Pls like
    Reply
    Report
  • BlueDragon
    ·2022-08-01
    Ok
    Reply
    Report
  • LWayne
    ·2022-08-01
    Yea
    Reply
    Report
  • doubleDees
    ·2022-08-01
    Okay
    Reply
    Report
  • Williamw
    ·2022-08-01
    Ok
    Reply
    Report
  • RPGold
    ·2022-08-01
    Ok
    Reply
    Report
  • TSY123
    ·2022-08-01
    Okay 
    Reply
    Report
  • chinks29
    ·2022-08-01
    Good
    Reply
    Report
  • Rickyt089
    ·2022-08-01
    Pls like 
    Reply
    Report
  • DragonKC
    ·2022-08-01
    Cathie always make the wrong investment decisions. 
    Reply
    Report
  • Ghtan
    ·2022-08-01
    Pls like 
    Reply
    Report
 
 
 
 

Most Discussed

 
 
 
 
 

7x24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email:uservice@ttm.financial