Tech stocks were hit hard on Tuesday after the U.S. Bureau of Labour Statistics said inflation, in August, was up 0.1% (month-over-month).
Cathie Wood went on a buying spree
Cathie Wood – Founder of Ark Invest, though, used the dip as an opportunity to load up on “27” stocks in total. Three of her most notable buys were:
15,000 shares of Nvidia Corporation (NASDAQ: NVDA) that’s down over 55% YTD
208,500 shares of the pandemic darling – Zoom Video Communications Inc
250,500 shares of Roku Inc (NASDAQ: ROKU) that reported disappointing Q2 in July
Another prominent purchase she made yesterday was Butterfly Network Inc. On the flip side, Wood sold about 1.5 million shares of Signify Health to partially fund her buying spree.
The influential investor had already bought $65 million worth of Nvidia last month. (read more)
Cathie Wood sees signs of deflation
FOMC is expected to raise rates by another 75 basis points at its next policy meeting on September 21st. But Wood dubs it a “mistake” and sees deflation on the horizon. Her recent tweet reads:
Fed is basing monetary policy on lagging indicators: employment and core inflation. Leading inflation indicators like gold and copper are flagging the risk of deflation. Even oil has dropped over 35% from its peak, erasing most of the gain this year.
Wood invests primarily in “disruptive tech”. Her flagship ARK Innovation ETF, therefore, has taken quite a beating in 2022 as the central bank resorted to lifting rates to fight inflation. ARKK is down roughly 55% for the year at the time of writing.
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