Elon Musk reacted to Cathie Wood's forecast for accelerated global GDP growth driven by disruptive innovation.
What Happened: On Friday, Musk acknowledged Wood's optimistic projection about the future of disruptive innovation. Wood, through her firm ARK Invest, predicts a significant boost in real GDP growth rates over the next two decades.
Wood's statement, shared by her firm's Director of Research, Brett Winton, suggests a jump from the historical 3% annual GDP growth to an impressive 6-8% in the coming 15-20 years. This prediction hinges on the impact of disruptive technologies.
Musk responded with a single-word tweet, "Wow."
Wow
— Elon Musk (@elonmusk) March 22, 2024
Why It Matters: Wood is known for her bullish stance on disruptive innovation, a belief that is central to the investment strategy of ARK Invest. Her firm has identified a potential $200 trillion market value for disruptive innovation platforms by 2030, which could dominate global equity market capitalization. This growth is expected to be fueled by artificial intelligence, among other technologies.
However, the performance of ARK Invest's flagship fund, the ARK Innovation ETF (NYSE:ARKK), has been lackluster in recent years, failing to surpass its April 2022 high. In contrast, the S&P 500 has seen a 17% increase since that date. This has led to the creation of funds like the AXS Short Innovation Daily ETF (NASDAQ:SARK), which bets against disruptive innovation by tracking the AXS 2X Innovation ETF (NASDAQ:TARK) inversely.
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