Tuesday’s massive sell-off presented Cathie Wood an opportunity to scoop up more of her favorite innovation stocks. The popular investor added stocks for five of her exchange-traded funds Tuesday, when the S & P 500 suffered its worst day of 2022 with a 4.3% drop. Wood snapped up shares of eight companies for her flagship ARK Innovation ETF , including adding to two of her largest holdings, Roku and Zoom Video. Roku and Zoom dropped 5.5% and 6.2%, respectively, on Tuesday. Wood’s purchases of the duo were worth about $33.5 million based on their closing prices. Wood also bought more shares of molecular diagnostics company Exact Sciences , which is ARKK’s fourth biggest holding. The innovation investor also ramped up her bets on Twilio , DraftKings , UiPath , Tusimple and Ginkgo Bioworks for her flagship fund. Her buying spree came as the market sold off after a key August inflation report came in hotter than expected, hurting investor optimism for cooling prices and a less aggressive Federal Reserve. The Dow Jones Industrial Average tumbled 1,200 points for its worst day since June 2020. Despite the hot reading on the consumer price index, Wood still believes that deflation is the bigger threat right now, a risk she’s been warning about since last year. She said Tuesday in an investor webinar that the Fed is making a policy mistake with big rate hikes. Wood also reiterated her conviction on innovation stocks to her clients, who have been disappointed with Ark’s performance this year. ARKK is down 55% this year as her disruptive darlings got hit hard by rising rates. ARKK also just suffered three straight months of outflows. “Innovation solves problems,” Wood said Tuesday in the webinar. “We believe that truly disruptive innovation is priced in the global equity markets for roughly $8 trillion, and we believe that $8 trillion is going to scale to over $200 trillion in the next eight to 10 years.”
© heardonwallstreet.com