ARK Invest founder and CEO Cathie Wood has launched the largest Buy The Dip operation since February, and precisely in the nightmare session of Wall Street the day before yesterday, which saw several investors, after the given shock on inflation, flee.
Not she who, in his contrarian viewhe believes, as well as Tesla’s number one Elon Musk that, in the months to come, the problem of the US economy will not bear so much the name of inflation as that of the opposite phenomenon, or deflation, in the wake of Jerome Powell’s aggressive interest rate stance by the Federal Reserve.
On the black Tuesday that Wall Street has just left behind, according to data reported by Bloomberg, Cathie Wood bought 27 shares through its eight ETFs:
the most conspicuous shopping has interested the actions of Roku, which are confirmed as the third biggest bet on which Ark Invest’s flagship ETF is betting, namely the $ 8 billion ETF ARK Innovation ETF (ticker ARKK).
The finance star made his move in line with what he wrote on Twitter last Monday, namely that, in the United States, “Deflation is developing”.
“His purchases had dropped a bit since January, but a few days ago they started growing again- commented to Fortune Athanasios Psarofagis, ETF market analyst for Bloomberg Intelligence. “The impression is that (Wood’s) beliefs have strengthened and that she is simply moving from deeds to words.”
This, while its flagship ETF has discounted hawkish bets on Fed rate hikesand the subsequent monetary tightenings that Powell & Co have announced, to the point of slipping since the beginning of this year more than 55%. But Cathie Wood certainly did not allow herself to be influenced and continued to remain faithful to her strategy, betting on the ‘losers’ securities of the market, and by demobilizing the so-called Winners.
Cathie Wood has launched record Buy The Dip since February
A few numbers are enough to describe how his strategy has not paid off so far: Roku lost nearly 71% this year, while Butterfly Network and Zoom Video Communications – the other stocks covered by his Buy The Dip on Wall Street Black Tuesday – fell by 14% and 58% respectively. On the other hand, 1.5 million Signify Health shares were sold, flying about 160% since mid-June.
Despite this, compared to Roku, which was the most purchased title by Wood in the session the day before yesterday, Butterfly Network and Zoom Video Communications were the second and third largest installments launched by the founder, CEO and CFO of Ark. Invest.
Il Buy the Dip di Cathie Wood was launched on the day the Nasdaq index suffered its strongest decline since March 2020, paying off, along with the Dow Jones and the S&P 500, the shock of US inflation, measured by the consumer price index.
The numbers drowned out hope that U.S. inflation has peaked, thereby fueling fears that the Fed of Jerome Powell continue on its path of aggressive rate hikes.
The next announcement on US rates is expected on 21 September: at this point a tightening of 75 basis points, the third in a row, is considered inevitable. However, there are those who also bet on a monetary tightening of 100 basis points. Although it must be said that the other data that monitors the trend of inflation, that is the producer price indexhas eased the fears a little.