Half-Cut 'Donnamu Unni' "The Market Is Irrational"

Dissatisfaction with Tech Stock Decline... "Will Ultimately Receive an Award"

[Asia Economy New York=Correspondent Baek Jong-min] 'Money Tree Sister' Cathie Wood criticized the market where tech stocks have been plummeting day after day as irrational.

She analyzed that the plunge of ARK Investment Management's exchange-traded funds (ETFs), caused by the sharp decline of the growth stocks she mainly invests in, is a temporary phenomenon.

On the 10th (local time), Wood stated in a video released on ARK Investment Management's website, "Sometimes the market can be irrational, and what is happening now can be called irrational." She criticized the reversal in the valuation of tech stocks due to rising government bond yields.

She recalled, "It was a very difficult time after the market shifted from growth stocks to value stocks a year ago."

Among the stocks heavily held by ARK Investment Management, except Tesla, Zoom, Teladoc Health, Roku, and others have fallen more than 50% over the past year.

Wood's flagship fund, the ARK Innovation Fund, has halved from its peak last year. On this day, it also plunged by as much as 4% during the session.

On this day, the U.S. Treasury yield exceeded 1.8% during the session, and the Nasdaq index fell more than 2.5% at one point, marking five consecutive trading days of decline. The Nasdaq reduced its losses in the afternoon and was down 0.27% as of 3:50 p.m.

Wood expected that the stock prices of the companies she invested in would eventually rise. She said, "If we are right, the technologies we invested in will return in sales and profits," adding, "Expect the (next) reward to come."

She said that the earnings of tech stocks could change the trend. If the earnings of the growth stocks she invested in are positive, stock prices could hit bottom and rise.

This content was produced with the assistance of AI translation services.