The ARK Innovation fund, managed by Cathie Wood, is set to announce its first monthly gain in eight months.
Reuters reported that ARK Innovation rose 11.3 percent in July, despite a drop on Friday. The ARK gain has been aided by a 27% increase in Tesla’s share price throughout the month. Wood’s portfolio experienced huge profits during the epidemic as Teladoc Health Inc, Zoom Video Communications Inc, and Tesla stocks all soared.
Investors believe that the Fed has fuelled the recent stock surge. However, the recent surge in stocks is due to a minor comeback after a significant slump in tech stocks this year.
Although ARK is down 53% in 2022, as reported by Reuters, Woods’ chosen firms, many of which are young or unprofitable, are impacted by the Fed’s relentless rate rises.
According to Fundstrat’s Tom Lee, the current market climate is favorable, and he believes that the S&P 500 will rise to over 4,800 by the end of the year because it took the S&P 500 just four months to recover the 36-month bear market losses in August 1982.”