Cathie Wood says inflation will ‘unwind pretty quickly’ and that stocks will probably be fine — here are 3 of her top picks to keep riding the bull
Cathie Wood, superstar stock picker and CEO of investment firm ARK Invest, believes the stock market is in a bull run that will continue putting smiles on the faces of investors — so long as the U.S. can avoid a recession.
Despite the sky-will-fall predictions of investors like Michael Burry, Wood recently told Barron’s that the market is “probably going to be fine,” explaining that value stocks, cyclical stocks and defensive stocks all continue to climb despite what COVID-19 and a disrupted economy have been able to throw at it.
Inflation, she said, will “unwind pretty quickly.”
Despite recent turbulence, Wood’s most well-known ETF, ARK Innovation, is up roughly 118% over the last three years. Let’s look at three companies the fund holds significant positions in that should benefit nicely from a continued bull run.
You might even be able to get a piece of them with some of your extra cash.
Shopify (SHOP)
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Wood believes Canadian e-commerce giant Shopify is in a position to challenge the space’s biggest player, Amazon, in the coming years. Thanks to its differentiated service and first-mover advantage, Shopify’s upside remains attractive according to Wood.
“We’re trying to figure out how Amazon is going to deal with this notion of individuals seeing something on Instagram or elsewhere on Facebook or on Twitter, or on Snap and just buying there,” Wood recently told BNN Bloomberg. “That’s a Shopify-enabled commerce opportunity and we think it’s going to be big.”
Shopify is already pretty big. In Q3, the company raked in over $1.1 billion in revenue and currently boasts a market cap greater than $180 billion.
The company’s stock is up about 22% this year, which is good news for ARKK investors. The fund holds more than 425,000 shares in Shopify.
Block (SQ)
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If there’s one thing Cathie Wood’s a fan of, it’s disruption. And Block (formerly known as Square)…
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