Cathie Wood was put to the test in 2021 and next year won't be any easier

Despite a year marked by underperformance, Wood is keeping pace with the disruptive innovation strategy that positioned her as a bull market poster child last year after her allocations to the so-called “stay-at-home” picks that benefited from COVID-19 lockdowns earned her an annual return of 150%. Even as those stocks fall out of favor, Wood, whose firm declined a request for an interview, is sticking to her plan, arguing that naysayers should instead be worried about “safe” indexes like the S&P 500 with values she says have soared above those of the underlying companies they track.

Wood has doubled down on her stance that she can do just that, shrugging off losses and dismissing fears of a “bubble,” even as it stands to be tested by the sell-off of high-growth tech stocks likely to be worsened next year if the Federal Reserve acts on expectations to raise interest rates as many as three times, making such companies particularly vulnerable.

Next year will be a really challenging year for Ark funds as federal reserve will raise rate at least 3 time. It is almost to the end of year and investors should reevaluate if ark funds could still generate a positive return for 2022. Investors might easily lose direction since many of them just follow the trend and buy into the funds without really understanding what kind of stocks that the funds are holding.