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Key Words: As Ark’s flagship fund plunges 76% from its peak, Cathie Wood still views her stocks as residing in ‘deep value territory’


The wheels have really come off the wagon of the stock market and Cathie Wood’s ARK Invest has, arguably, seen the most dramatic fall from its parabolic rise, amid the current downdraft in markets.

However, the S&P 500

hanging on the precipice of a bear market — a decline of at least 20% from its recent peak — and the technology-heavy Nasdaq Composite’s

nearly 30% crash from its peak apparently haven’t shaken Wood’s belief that her strategy of targeting super-growth tech stocks will come back into vogue.

Read: Opinion: When is it safe to start buying stocks again? We’re not there yet, but these are the six signs to look for

In a Wednesday tweet, the chief executive of ARK Investment Management was leaning into the notion that Ark’s beaten-down suite of disruptive technology stocks represent a massive value opportunity to would-be investors.

“Genomic sequencing, adaptive robotics, energy storage, AI, and blockchain technology are realities, their stocks seemingly in deep value territory,” she tweeted,

See: Instacart confidentially files for its long-awaited IPO

Still, ARK’s stock-market bets on disruptive innovation have tanked this year, even as the founder maintains that fundamentals, for the most part, have “not deteriorated.” 

Wood’s Wednesday tweet comes as shares of the ARK Innovation ETF
her flagship fund, are down more than 76%, as of Wednesday’s close.

Despite Wood’s conviction, investors seem to he heading for the hills, leaving the market in a state of disarray, with fears that the carnage being wrought in the Nasdaq, S&P 500 and Dow Jones Industrial Average

may still be too early to safely sift through for buying opportunities.

Check out: MarketWatch’s Moneyist: ‘How can I be fair to both?’: I spent $20,000 more on my daughter’s education than my son’s education. Should I level the playing field—and invest $20,000 in stocks for my son’s retirement?

Earlier in the week, Wood tweeted her opinion that companies like Zoom Video Communications
which also has been pounded among a protracted repricing of once-high-flying names, would be one of the prime beneficiaries of the first “rip and replace” cycle since the early 1990s in the global communications space.

But so far, this year, investors aren’t buying into Wood’s thesis.

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