Exchanges Equity Bear Market: A Paradigm Shift?
Jun 21, 2022
Cathie Wood, Founder and CEO of ARK Invest, is renowned for her focus on high-growth companies. Cliff Asness, from AQR Capital Management, specializes in value investing, while David Kostin is the Chief U.S. Equity Strategist at Goldman Sachs. They dive into the tumultuous equity markets, discussing how inflation and rising rates are reshaping investment strategies. The conversation highlights the evolution of technology, the transition from growth to value stocks, and the potential of disruptive innovations like AI, urging a strategic reevaluation for investors.
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Equity Market Downturn
- The S&P 500 experienced a decline, impacting tech and growth companies harder.
- Cathie Wood believes this is primarily rate-driven, but growth equity's dominance isn't over as inflation eases.
Inflationary Pressures Easing
- Cathie Wood suggests current inflation is a temporary shock, prolonged by supply chain issues and the Ukraine war.
- She sees signs of easing inflation in shipping rates and high retailer inventories, hinting at potential deflation.
Tech Bubble vs. Now
- Unlike the 2000s tech bubble, current technologies are a reality, not just a dream.
- Cathie Wood cites genomics and AI as examples, highlighting their cost reductions and real-world applications.