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ARK’s Wood turns focus to deflation, ‘stay connected’ stocks -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO. Cathie Wood is the founder and CEO at ARK Investment Management LLC. She speaks on September 13th, 2021, in New York City. REUTERS/Brendan McDermid/File Photo

By David Randall

NEW YORK, (Reuters) – Cathie, a star stock picker at ARK Invest, doubled her wager that deflation will outweigh inflation in the U.S. in a Tuesday webinar.

Wood’s ARK Innovation ETF, which was among the best-performing U.S. equity funds tracked by Morningstar in 2020, before dropping to the bottom of the list in 2021, was a strong argument against the notion that she should have companies such as Zoom Video Communications Teladoc (NYSE 🙂 Health Inc was just one of many beneficiaries of economic locking downs that occurred at the beginning of the coronavirus pandemic.

She said, “They’re not home-at-home stocks. They are stay-connected stocks.”

Zoom for example, said she expected “strenching growth rates in the future” and Teladoc, the backbone of U.S. healthcare, would be a good example.

Wood predicts that inflation will drop this year due to supply chain disruptions and businesses no longer feeling the need for double- or triple order goods. Wood said that the technology will also continue to lower prices on goods and services.

Wood stated that companies are discovering how effective technology is in lowering costs.

The ARK Innovation ETF has fallen 7.6% in the past year due to rising interest rates. This is because the portfolio includes high-growth and high-value companIEs.

On Monday afternoon, the fund gained 3.2%

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