Star fund manager and ARK Invest chief executive Cathy Wood said in a monthly market update on Tuesday that the used car market is where she expects potential losses following a rise in prices.
She said she wouldn’t be surprised to see “a bloodbath in the used car market”, with valuations slashing prices in the coming year 2023 as supply-chain constraints and demand slump a pop. Is.
“We would submit that they would be looking at losses,” Wood said, referring to the car companies that Tesla Inc. managed to outperform electric-vehicle makers such as TSLA,
+0.14%,
Which is considered the vanguard of the EV wave last year.
The comments Wood made on Tuesday are similar to those he expressed earlier this week via a video released by the company, where he cited, among other things, a growing list of used cars , as evidence that prices will fall in the coming year and hurt General Motors’ sales of new vehicles to traditional carmakers like GM and Ford F.
Wood and his team at ARK Invest’s monthly update comes amid a brutal stretch that has forced the operators of the ARK Invest ETF, including flagship Ark Innovations ARKK, to
+2.89%
Fund, to do some soul-searching, the fund manager is sticking to his game plan.
ARK’s seven ETFs have outperformed Tesla, and Teladoc Health Inc. Profit-based returns from companies like TDOC delivered an average of 141%, making Wood the toast of Wall Street, but it’s been having a tough time in recent months.
Still, at the monthly symposium, Wood said one problem is that investors and analysts are being short-sighted and not thinking at least five years into the future.
“They’re not looking at five years out… there’s a lot of muscle memory that decides what’s going on,” she said of the flight from some of her popular disruptive innovation themes.
Company insiders sold $13.5 billion of stock in the innovation fund’s holdings in the six months to December, while buying just $11 million. financial Times Reported citing data from brokerage StoneX.
