Unique investment strategy: weapon or bubble?
Cathie Wood believes that innovative stocks are not in a bubble but rather in a deeply undervalued zone. She estimates that the public global market prices innovation at about $10 to $15 trillion; within a decade, disruptive innovation is expected to reach a market value of around $200 trillion.
ARK's definition of innovation encompasses three key aspects:
Significant cost reduction: This leads to increased demand, market expansion, and diversification.
Cross-industry and geographic reach: Innovations can withstand business cycle risks and spark interdisciplinary interest.
Interconnectivity with other innovations: These platforms can expand in unimaginable ways.
These principles are fully reflected in ARK's portfolio of 6 actively managed ETFs and 2 index ETFs.
ARK's long-term investment strategy has focused on five categories of innovative companies: artificial intelligence, energy storage, robotics, genome sequencing, and blockchain technology.
The market generally anticipates that by 2024, a shift to lowering interest rates is likely, coupled with the tech sector's expected upward trend in performance. This suggests that the time might be ripe for investing in the U.S. tech sector. In this context, the ARK funds managed by Cathie Wood could show greater elasticity.
*T&Cs apply. Investment in financial market products may carry the inherent risk of loss. This is not financial advice. This advertisement has not been reviewed by the Monetary Authority of Singapore.