Startups were favored by investors in 2020, but they were sold off in the second half of 2021. The decline continued this year. Cathie Wood, founder of Ark Invest, which invests heavily in innovative technology companies, still Be confident, and recently said that the adjustment is only a “big sale period.”
Cathie Wood, known as the “woman of the stock market”, has not performed well this year. The fund’s ETF has fallen 27%, and has halved since its high in February last year. However, she said in a recent interview that many people regard volatility and risk as the same, but she believes that volatility is an advantage. Concentrating on investing in valuable companies will see the best results when the stock market correction is over. The innovative technology companies she has invested in include DNA technology, automation, robotics, energy storage, artificial intelligence and financial technology, etc. Many innovative technology companies that have failed to show profitability are currently the main targets of selling.
Wood admits that the current market conditions are very difficult, but she has increased confidence in her investment targets over the past year, especially as the growth of new startups has accelerated a lot under the epidemic, especially the changes in the labor market, logistics and financial markets. She emphasized that now is the time for big discounts, and investors should seize the opportunity of cheap valuations to buy future stars who can bring changes to the market.