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Cathie Wood’s Bright Outlook For 2024 Market Cathie Wood’s Bright Outlook For 2024 Market

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CathieWoods CourtesyArkInvest 2

ARK Invest CEO Cathie Wood is armed and ready to steer through the upcoming deflationary period by doubling down on innovation and technological advancements. This daring strategy aims to harness deflation and innovation, making it a recipe for exponential growth.

What Happened: Wood dropped some truth bombs about the 2024 market outlook and her investment strategy during her appearance on CNBC’s “The Exchange.” Here’s the lowdown:

  • Deflation: Brace yourself for the deflation wave in 2024, as the Federal Reserve gears up to aggressively slash rates. This economic setting, paired with technological advances, lays the groundwork for companies adept at handling deflation and committed to innovation to experience monumental growth in the coming years.
  • Diversification: The ARK Innovation ETF ARKK, Wood’s flagship fund, has bounced back significantly with a whopping 70% year-to-date surge. Wood credits this success to the laser-like focus on high-conviction stocks during the slump, a move that many considered as risky business. As the market steadies, ARK is broadening its portfolio, eyeing the potential reopening of the IPO market and reinstating some previously offloaded stocks due to clearer prospects.
  • Artificial Intelligence (AI): Wood’s game plan now involves a stronger emphasis on companies at the forefront of AI and technology. She singled out Meta Platforms
    META and expressed renewed interest in the company, which ARK had previously trimmed holdings in due to skepticism about its Metaverse strategy. Wood’s renewed enthusiasm for Meta aligns with CEO Mark Zuckerberg‘s use of open-source AI.

See Also: Elon Musk Tells Cathie Wood Legacy Media Is Doing What They Can For Clicks – ‘Can’t Entirely Blame Them’

  • The Rise of Gene Editing: Wood also emphasized the transformative potential of gene editing technologies, specifically mentioning CRISPR Therapeutics. The recent FDA approval of the first gene therapy using CRISPR CAS 9 for sickle cell disease is seen as a groundbreaking development. According to Wood, this sector has been undervalued due to its early-stage nature and cash-burn problems, presenting a mouthwatering investment opportunity.
  • ARK’s Top Holdings: Wood laid bare that Coinbase Global Inc. COIN, with a jaw-dropping 400% surge this year, has surpassed Tesla Inc. TSLA as ARK’s top holding. Other significant positions include UI Path Inc. PATH, Zoom Video Communication Inc. ZM, Roku Inc. ROKU, Block Inc. SQ, Roblox Corp. RBLX, and CRISPR Therapeutics AG

See Also: Cathie Wood’s Ark Invest Buys Tesla, Meta Shares Amid Market Volatility — Sells Coinbase And Grayscale Bitcoin Trust Shares

Table: ARK Innovation ETF Top 10 Holdings

Security Name Sector Price Weight YTD Return
Coinbase Global, Inc. Financials 175.48 11.05% 395.85%
Tesla, Inc. Consumer Discretionary 252.61 7.63% 105.07%
UIPath Inc. Information Technology 25.33 7.32% 99.29%
Roku, Inc. Communication Services 90.61 6.95% 122.62%
Zoom Video Communications, Inc. Information Technology 72.43 6.84% 6.92%
Block, Inc. Financials 76.69 6.50% 22.04%
Roblox Corporation Communication Services 45.98 4.20% 61.58%
Twilio Inc. Information Technology 75.80 4.06% 54.82%
CRISPR Therapeutics AG Health Care 63.63 3.92% 56.53%
Unity Software Inc. Information Technology 39.30 3.72% 37.44%

Read Now: Is Lower Inflation A Green Light For 2024 Interest Rate Cuts? Markets Are Ending The Year ‘Surprised,’ CIO Says

according to sources, as of 1/7/22024 Cathie Wood’s is dumping coinbase shares in favor of palantar.

Image: Courtesy of Ark

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