Arks Wood remains bullish on Tesla as U.S. recession fears rise

div classBodysc17zpet90 cdBBJodivpBy David Randallp

pNEW YORK Reuters – Star stock picker Cathie Wood of Ark Invest remained bullish on top holding Tesla Inc on Tuesday despite growing fears of a U.S. recession and shutdowns of the car makers Shanghai factory due to spiking coronavirus cases. pdivdivdiv classBodysc17zpet90 cdBBJodiv

p“What we said during COVID about innovation solving problems will move into overdrive,” she told a webinar, with Tesla poised to “deliver truly exponential growth for many, many years” as it expands its autonomous driving programs.p

pWoods bullish stance on technology comes as yields of twoyear Treasuries have moved above those of 10year Treasuries in recent weeks, which is often considered a precursor to a recession. p

pWood, whose ARK Innovation ETF was the topperforming U.S. equity fund in 2020, said that she expects “truly disruptive innovation” will come back into favor as investors turn to technology to solve economic problems. p

pTesla is down 6 for the year to date, while Woods secondlargest position, Teladoc Health Inc, is down nearly 26 over the same time. p

pOverall, ARK Innovation is down 36.7 for the year to date, a performance that puts it in the worst percentile among the 615 U.S. MidCap Growth funds tracked by Morningstar. Shares of the fund rose 0.5 in afternoon trading Tuesday. p

pInvestors have pulled approximately a net 791 billion out of the fund over last three weeks, according to Lipper data. p

pThat threeweek losing streak was its longest since November. p

p

pp Reporting by David Randall Editing by Cynthia Ostermanp

divdivdiv classBodysc17zpet90 cdBBJodivdivdiv