The ARK Innovation ETF, headed by Cathie Wood, invests in Web3 technologies like Next Generation Internet, AI, and Automation categories.
Cathie Wood founded ARK Investment Management’s flagship fund, the ARX Innovation ETF. After a weaker-than-expected reading of consumer price index (CPI) data, Wood reiterated his view that the Fed would likely hike interest rates a few times next year but added that she was unsure when they would raise rates.
Cathie Wood’s ARKK Innovation ETF has had its best day since the COVID-19 pandemic hit. But is it time to jump back into the stock that covers Web3 technologies?
During the mega bull run last year, the ARK Innovation Fund by Cathie Wood was performing exceptionally well and was among the top-performing funds in the markets. But amidst the tight monetary policy this week, disruptive firms were severely hurt, so they became less appealing.
If the Federal Reserve decides to slow down its rate hikes, these stock prices could rise even further. On Thursday, the Fed released some disappointing economic news, but the markets were able to shrug off the bad news. As a result, all three top US indexes rose more than 5%.
Inflation is not something new for investors. However, the recent rise in inflation and the subsequent fall in the US dollar value has made it essential for investors to pay attention to the rate of change in the price index. While inflation can be seen as a good thing for consumers, it can also cause business problems.
For example, if companies raise prices too quickly, they may lose customers who cannot afford them. When inflation rises, the purchasing power of your money decreases. That means buying one item today costs more than buying the same item last year. To avoid losing customers due to rising prices, businesses should carefully monitor changes in the cost of their products.
Cathie Wood has stated that inflation would be impacted by retailers reducing prices because they had too much inventory during the summer months.
Web3 Sectors That ARK Innovation ETF Invest In
- Artificial Intelligence
- Next Generation Internet
- Fintech Innovation
A fund invests primarily in stocks of companies involved in disruptive innovations. Disruption means introducing a technology-enabled new product or service that could change how the entire market functions.
You’ll find within the ARK Innovation ETF range from those that depend heavily on or benefit from the advancement of technology related to science, engineering, and medicine to those that provide services for companies that develop new technologies in Web3.