The wheels of the stock market have really gotten out of hand and Cathie Wood’s ARK Invest has seen arguably the most dramatic decline from its parabolic rise amid the current market downturn.
The S&P 500 SPX,
hanging on the precipice of a bear market – down at least 20% from its recent peak – and the COMP of the tech-heavy Nasdaq Composite,
The nearly 30 percent plunge from its peak has apparently not shaken Wood’s belief that her strategy of targeting super-growth tech stocks will come back into vogue.
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In a Wednesday tweet, ARK Investment Management’s chief executive leaned toward the notion that Ark’s seedy suite of disruptive tech stocks represents a massive value opportunity for potential investors.
“Genomic sequencing, adaptive robotics, energy storage, AI and blockchain technology are realities, your stocks appear to be in deep value territory,” she tweeted.
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Still, ARK’s stock bets on disruptive innovation have fallen this year, even as the founder claims its fundamentals “haven’t deteriorated” for the most part.
Wood’s Wednesday tweet comes as shares of ARK Innovation ETF ARKK,
its flagship fund is down more than 76% at the close on Wednesday.
Despite Wood’s conviction, investors appear to be heading for the mountains, leaving the market in a state of disarray with fears that the carnage in the Nasdaq, S&P 500 and Dow Jones Industrial Average DJIA,
possibly too early to look for buying opportunities with certainty.
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Earlier in the week, Wood tweeted her opinion that companies like Zoom Video Communications ZM,
which has also suffered from a protracted re-evaluation of once lofty names, would be one of the main beneficiaries of the first rip-and-replace cycle in global communications since the early 1990s.
But so far this year, investors don’t believe Wood’s thesis.
https://www.marketwatch.com/story/as-arks-flagship-fund-plunges-76-from-its-peak-cathie-wood-still-views-her-stocks-as-residing-in-deep-value-territory-11652327140?rss=1&siteid=rss While Ark’s flagship fund has fallen 76% from its peak, Cathie Wood still considers her stocks “low-value territory.”