Cathy Wood has made a name for herself as one of the most active and popular American investors in the technology sector. She is the CEO and CIO of Ark Invest, an investment management firm that became popular during the COVID-19 pandemic as Kathy was one of the most vocal supporters of the tech sector.
launch of ARKK Innovation ETF It became possible for retail investors to gain exposure to innovative technology companies at a low cost. Disruptive innovation is the name of the game for an investor in ARKK, an ETF filled with cutting-edge firms from sectors such as genomics, transportation, infrastructure, or artificial intelligence.
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But ARKK (and Cathy) have seen their investment fade in 2022. The ARKK ETF is down significantly on the year, despite Cathy Wood’s emphasis on making some of the boldest bets on Wall Street:
- Tesla is trading at $3,000/share
- ARKK earned 40% annualized returns in five years
- bitcoin reaches 1 million dollars
Cathy Wood is Bullish on Tesla
Cathy (and ARKK) Tesla (Nasdaq: TSLA, He made no secret of it, and on March 2021, investment firm Cathy released a research report with a price target of $3,000/share ($1,000/share) post-split for Tesla with a time horizon of five years.
But that was not all.
He reiterated the bullish case for Tesla this year. Arc Invest raised the 5-year target for Tesla’s stock to $4,600/share ($1533 post-split) in April.
Reality check in November 2022 – Tesla stock is down 49%.
ARKK will return 40%/year to investors
Last year, Kathy gave a bold forecast for ARKK on national TV; It will earn 40% annual return in five years.
She went ahead this year and increased the five-year returns to 50%.
Reality check – ARKK ETF is down 67% in Nov 2022.
bitcoin will reach $1 million
One of the most famous predictions he ever made was about bitcoin. Cathy Wood owns bitcoin and said this month that bitcoin will reach $1 million by 2030.
This would equate to a 67.5% profit in one year. Furthermore, it implies that the market capitalization of bitcoin will reach $21 trillion by 2030. As a comparison, the global money supply is less than twice that amount.
Reality Check in November 2022 – Bitcoin is down 68% YTD at the time of writing this article, trading at $16,580.
I’m not saying that putting money with Cathy is a bad investment. Instead, I’ll leave it to the great investor, Ray Dalio, to explain it:
“To make money in the markets you have to think independently and be humble.”
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