Cathie Wood Defends Investments In Crypto, Tesla, & Twitter, In Latest CNBC Appearance
Cathie Wood took to CNBC this morning to try and pump air back in her flagship investments explain her reasoning on several of her well-known positions, as her flagship ARKK fund continues to struggle YTD.
Wood first defended cryptos, stating that she “doesn’t follow the consensus that crypto markets are due for a correction,” according to Bloomberg.
She made the argument partially due to the fact that institutions are moving into the crypto space.
“Institutional managers have to look at new asset classes that are evolving that have low correlations…so we think that the move actually, by institutions into Bitcoin, if we were to choose Bitcoin and that seems to be their first stop, could add $500,000 to Bitcoin’s price if they moved into the tune of roughly 5% over time,” Wood said.
She also continued to tout her investment in Tesla, claiming that Elon Musk’s criticisms of President Biden’s Build Back Better plan were justified.
She continued to argue that Tesla is undervalued and justified her $3,000 price target by saying “that other companies are having difficulty overcoming especially when it comes to battery technology and artificial intelligence, which will lead to autonomous and that’s now where Tesla is undervalued”.
Finally, Wood offered up her reasoning for adding shares of Twitter: “What we’re seeing is that this platform, which used to be dominated by tweens, teens and celebrities in 2012 when we first evolved our research ecosystem, has now evolved to knowledge workers.”
She argued the social media platform could play a larger role in NFTs going forward.
Recall, we noted Wood was launching her 9th ETF this week, despite her flagship fund faltering this year. The launch comes while Wood’s flagship fund, as many have pointed out, is falling behind major index benchmarks at a dizzying rate, despite the success of Tesla over the last year.
We noted back in September that despite the supposed focus on virtue signaling in her new ETF (we’re guessing that’s why Wood is excluding gambling and oil and gas), Wood still has massive exposure to names like DraftKings elsewhere and will be including companies like Apple and Nike – notorious for their labor practices – in the latest ETF offering.
The inclusion of these names hasn’t stopped Wood from trying to position this ETF as some type of pious pathway into the world of investing.
Friend of Zero Hedge and Bloomberg ETF expert Eric Balchunas said earlier this year: “This is kind of Ark’s version of ESG. It’s intriguing because it doesn’t have a moralizing vibe to it, it’s like they’re saying if you go after transparency, you’re probably going to buy good companies.”
Thu, 12/09/2021 – 09:55