June 30, 2022

Europe’s economic system is probably going already in a recession on account of the Russian invasion of Ukraine and the U.S. economic system might not be far behind, which is able to probably immediate corporations and customers to look towards know-how to decrease prices, star inventory picker Cathie Wooden of Ark Make investments mentioned in a webinar on Tuesday.

Wooden, whose ARK Innovation fund outperformed all different U.S. fairness funds following the coronavirus lockdowns in 2020 earlier than stalling in February 2021, mentioned that hovering oil costs ought to speed up the transition to electrical autos, whereas genomics corporations ought to profit as a type of cost-saving in comparison with present types of therapy.

“The excellent news is that innovation solves issues,” Wooden mentioned.

Wooden’s optimism comes as her flagship ARK Innovation fund is down 38.6% for the yr so far as excessive inflation saps investor urge for food for the high-growth and low-revenue corporations which are mainstays of her portfolio. Her largest place, Tesla Inc , is down 32% for the yr so far, whereas streaming firm Roku Inc, one other high holding, is down practically 52% over the identical time.

The benchmark S&P 500 is down 11.8% for the yr so far.

The shock of excessive fuel costs could immediate the Federal Reserve to again off its plan to lift rates of interest repeatedly this yr, Wooden mentioned.

“We’ve bought quite a lot of concern baked into the markets,” she mentioned.

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