Cathy Wood says these tailwinds will drive the bull market into 2038
With inflation rising, interest rates rising, and valuations stretching, even major Wall Street strategists are expecting major corrections.
But a large investor remains optimistic – the founder of Ark Invest, Cathy Wood.
In an interview with Yahoo Finance Live last month, Wood cited research by Fundstrat’s Thomas Lee that suggests millennials could fuel the stock market’s recovery through 2038.
“This is the echo of the baby boom,” she said, referring to the rapid rise of millennial investors.
The best company in the Ark Foundation – ARK Innovation (ARKK) – is Tesla, a favorite of millennials.
But Wood has plenty of other big bets, too.
Here’s a look at ARKK’s three biggest holdings besides Tesla—one of which might be worth buying Some of your “spare parts”.
Teladoc Health (TDOC)
Teladoc Health is one of the leading telemedicine companies in the United States with a proven track record of revenue growth and margin improvement.
It is not surprising that the company is benefiting from the exceptional environment created by the Corona virus.
When non-life-threatening in-office medical care was suspended during the height of the pandemic, telehealth adoption exploded.
Teladoc’s revenue increased 98% in 2020 to $1.09 billion, with total visits up 156%.
For 2021, management expects an upper line of between $2.0 billion and $2.025 billion.
Teladoc is currently ARKK’s second largest holding company, accounting for 6.2% of the fund’s weight. But inventory has already fallen 30% since the beginning of the year.
If you are on the fence about buying Teladoc while it is not desirable, Some investment applications It may give you a free share of Teladoc just for signing up.
Coinbase Global (COIN)
If you have ever purchased Bitcoin from an exchange, you will know that there are usually transaction fees involved. These transaction fees add up quickly.
This is how Coinbase makes its money.
As the largest cryptocurrency exchange in the US, it earns transaction fees every time someone buys or sells cryptocurrency on the exchange.
In the second quarter, Coinbase’s monthly retail transaction users grew 44% compared to the previous quarter to reach 8.8 million users. It generated $1.9 billion in transaction revenue and over $100 million in subscription and service revenue.
The company represents just over 6% of ARKK’s portfolio.
Thanks to Bitcoin’s recent rally, Coinbase shares are currently trading at over $300 a piece.
But you can get a slice of the company with a popular stock trading app that allows you to Buy fractional shares How much money you want to spend.
The secular trend of video-on-demand streaming has led to many technology winners.
Roku is one of them. Over the past five years, the stock has increased more than 10 times.
The company’s platform allows users to access streaming services such as Youtube, Netflix, and Disney+. Roku also offers its own ad-supported channels that display licensed third-party content.
The company added 1.5 million active accounts in the second quarter. Total revenue increased 81% year over year to $645 million.
Of course, there are other, much larger ways to power this massive, flowing tailwind.
Netflix just added 4.4 million new subscribers in the third quarter while Disney+ has 116 million.
But Wood is clearly the most bullish on Roku as a “pure” way of playing the trend, with stocks accounting for 5.8% of ARKK’s weight.
The ‘secret’ assets of the wealthy
A quick word of warning: Even in a bull market, most things don’t go up in a straight line.
Corrections can and do happen. Even Tesla had a drawdown of more than 35% earlier this year.
If you want to invest in something that has little to do with the ups and downs of the stock market, you may want to consider an overlooked asset – Sophisticated art.
Investing in fine art by the likes of Banksy and Andy Warhol was only an option for wealthy people like Wood.
After all, a half-tattered Banksy piece just fetched $25.4 million at a Sotheby’s auction.
but with New investment platformYou can also invest in popular artwork, just like Jeff Bezos and Peggy Guggenheim.
According to Citi Global Art Market’s chart, contemporary artwork has delivered a 14% annual return for the past 25 years, easily exceeding the S&P 500’s 9.5% annual return.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.