Cathie Wood is expecting a ‘bloodbath’ in this segment of the market: ‘autos are one example of…many disturbances out there in the world order’

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Cathie Wood, the prima money manager and main enforcement of ARK Invest, successful a Tuesday monthly marketplace update said that the utilized car marketplace is wherever she is expecting imaginable losses aft a surge successful values.

She said that she wouldn’t beryllium amazed to spot “a bloodbath successful the utilized car market,” with valuations tumbling successful the coming twelvemonth into 2023 arsenic prices that person surged due to the fact that of supply-chain bottlenecks and a popular successful request recede.

“We would taxable that they mightiness beryllium looking astatine losses,” Wood said, referring to car companies that managed to outperform electric-vehicle manufacturers specified arsenic Tesla Inc. TSLA, +0.59%, which is considered the vanguard of the EV wave, past year.

The comments that Wood made connected Tuesday are akin to those that she expressed via a video released by the company earlier this week, wherever she cited rising inventories of utilized cars, among different things, arsenic grounds that values volition tumble successful the coming twelvemonth and wounded income of caller vehicles arsenic good for accepted car makers similar General Motors GM and Ford F.

The monthly update from Wood and her squad astatine ARK Invest come amid a brutal stretch that has compelled the operators of the ARK Invest ETFs, including the flagship Ark Innovation ARKK, +2.76% fund, to do some soul-searching, the money manager is sticking to her crippled plan.

ARK’s 7 ETFs returned an mean of 141% successful 2020, connected the backmost of gains from companies specified as Tesla, and Teladoc Health Inc. TDOC, making Wood the toast of Wall Street, but she has had a tougher clip successful caller months.

Still, connected the monthly seminar, Wood said that 1 occupation is that investors and analysts are being shortsighted and not reasoning astatine slightest 5 years into the future.

“They are not looking 5 years out…there’s a batch of musculus representation dictating what’s going on,” she said of the formation retired of immoderate her fashionable disruptive innovation themes.

Company insiders astatine the innovation fund’s holdings sold $13.5 cardinal worthy of banal successful the six months to December portion buying conscionable $11 million, the Financial Times reported, citing information from brokerage StoneX.

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