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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Star fund manager and ARK Invest chief executive Cathy Wood said in a monthly market update on Tuesday that the used car market is where she expects potential losses following a rise in prices.

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She said she wouldn’t be surprised to see “a bloodbath in the used car market”, with valuations slashing prices in the coming year 2023 as supply-chain constraints and demand slump a pop. Is.

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“We would submit that they would be looking at losses,” Wood said, referring to the car companies that Tesla Inc. managed to outperform electric-vehicle makers such as TSLA,
+0.14%,
Which is considered the vanguard of the EV wave last year.

The comments Wood made on Tuesday are similar to those he expressed earlier this week via a video released by the company, where he cited, among other things, a growing list of used cars , as evidence that prices will fall in the coming year and hurt General Motors’ sales of new vehicles to traditional carmakers like GM and Ford F.

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Wood and his team at ARK Invest’s monthly update comes amid a brutal stretch that has forced the operators of the ARK Invest ETF, including flagship Ark Innovations ARKK, to
+2.89%
Fund, to do some soul-searching, the fund manager is sticking to his game plan.

ARK’s seven ETFs have outperformed Tesla, and Teladoc Health Inc. Profit-based returns from companies like TDOC delivered an average of 141%, making Wood the toast of Wall Street, but it’s been having a tough time in recent months.

Still, at the monthly symposium, Wood said one problem is that investors and analysts are being short-sighted and not thinking at least five years into the future.

“They’re not looking at five years out… there’s a lot of muscle memory that decides what’s going on,” she said of the flight from some of her popular disruptive innovation themes.

Company insiders sold $13.5 billion of stock in the innovation fund’s holdings in the six months to December, while buying just $11 million. financial Times Reported citing data from brokerage StoneX.

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