**: Global Market Broadcast.
Cathy Wood, founder of Ark Investment Management, revealed on Friday that her investment strategy for 2024 is to focus on innovation and technological advancement during expected periods of deflation.
Wood shared her insights on the market outlook for 2024 and her investment strategy in a TV interview on Friday.
Wood expects deflation in the U.S. economy, which she said will be a key theme in 2024, prompting the Fed to cut interest rates aggressively. This economic environment, combined with technological advancements, has created businesses that are well adapted to deflation and committed to innovation to achieve significant expansion in the coming years.
Wood's flagship Ark Innovation ETF (ARKK) has seen a remarkable turn, with 70% so far this year. Wood attributes this success to a focus on high confidence during the downturn, although many see the move as risky. As the market stabilises, ARK is diversifying its portfolio with an eye on the possibility of restarting the IPO market and adding some previously sold ** as the outlook becomes clearer.
A major shift in her strategy, Wood said, is to focus more on companies that are at the forefront of AI and technology. She specifically mentioned Meta. Due to doubts about its metaverse strategy, ARK previously ** a stake in Meta. Wood's new interest in Meta is in line with the idea of the company's CEO, Mark Zuckerberg, leveraging open-source artificial intelligence.
Wood also highlighted the transformative potential of gene editing technology, specifically mentioning CRISPR**. The recent approval of the first gene for sickle cell disease using CRISPR Cas 9 by the U.S. Food and Drug Administration (FDA) is considered a breakthrough development. Mr Wood said pricing has been unreasonable due to the early nature of the industry and cash burn issues, which provides an attractive investment opportunity.
In this interview, Wood revealed that Coinbase Global has surpassed Tesla Inc. to become Ark's largest heavy stock with a staggering 400% growth this year. Ark's other heavyweights include Uipath, Zoom, Roku, Block, Roblox, CRISPR Therapeutics, and more.