Cathie Wood and her Ark Invest ETFs have been the bull face of the stock and crypto hype over the last two years. Amid fears of a tightening monetary regime, Ark Invest is in the midst of its worst drawdown since inception, falling as much as 58% from its record high. But Wood is convinced that the party is far from over. Wood also believes that with the entry of institutional investors, a target price of $500,000 for Bitcoin (BTC) is realistic. It is a real bull!
In an interview with ETF Trends, Cathie Wood gave some advice to the investors who have lost money in her strategy. Wood has often stressed that Ark Invest takes a five-year outlook when it makes investments. With such a steep sell-off in Ark Invest’s holdings amid a period of rising inflation and a hawkish Fed, Wood expects a sharp rebound to unfold.
“What this means is that this rubber band has been stretched so tightly, that we believe, and consider the source, but we truly believe given the valuations in our portfolio, the growth in the portfolio, and the fact that we’re probably looking at very choppy waters from a cyclical point of view so that our secular growers are going to shine,” Wood said.
Investors should take advantage of the potential for a sharp rebound in Ark’s strategies, according to Wood.