Why Disruptive Innovation Is Inherently Controversial | ITK with Cathie Wood

On episode XXVII of "In the Know," (April 1, 2022) ARK CEO/CIO, Cathie Wood, weighs in on the bond market, inflation, consumer sentiment, ARK's differentiated approach, and why disruptive innovation is inherently controversial. As always, she also discusses fiscal policy, monetary policy, market signals, economic indicators, and innovation. We hope you find this monthly series useful, especially during periods of heightened volatility. Stay Healthy. Stay Innovative.
01:07 - Innovation
03:23 - Valuations: Public vs. Private
04:12 - ARK’s Differentiated Approach
07:59 - Monetary Policy
08:10 - Bond Market & Fed Fund Rate
11:44 - Fiscal Policy
12:27 - Energy Prices & Production
14:06 - Economic Indicators
14:48 - Inventories
16:46 - Consumer Sentiment
18:05 - Retail Sales
19:35 - Consumer Credit
20:40 - Logistics Managers Index
23:20 - Housing and Capital Spending
25:00 - Inflation
26:20 - Oil
29:02 - Market Signals
29:30 - FAANG Stocks
30:30 - Shift from Bonds to Equities
32:10 - Yield Curve
34:00 - Corporate vs. Treasury Yields
34:26 - Crypto, Gold, & USD
35:30 - Disruptive Innovation Is Inherently Controversial
35:55 - Amazon
36:57 - Apple
37:23 - Bitcoin
38:09 - Tesla
38:30 - NASDAQ 100
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[@ARKInvest2015]

ARK is aware of hacked third-party KZbin channels fraudulently posing as ARK &/or Cathie Wood. These accounts are impersonators & not affiliated with ARK Invest or Cathie Wood in any way. ARK Invest will never use KZbin or other social media to solicit money, including cryptocurrency. Please report any account claiming otherwise! This channel is the only ARK Invest KZbin channel. For more information, please view our "What Types of Scams Impersonate ARK Invest and Cathie Wood?" section on our FAQ page here: ark-invest.com/faq/

[@williefaison3200]

I lost almost 3k to the Crypto Ponzi Frame that surrounded the live chat between you, Elon, and the bearded dude on April 10th, 2022... I was absolutely sick about it after sending all of my BTC to wallet: bc1qcn6twg7c74xkdxutdrq2d84cpxnazy5k6rx36h, lord knows I tried to get it back! It's a dayum shame that folks have nothing better to do than steal from honest people trying to do what's right! I learned an expensive lesson Ms. Wood, I gotta start saving BTC all over again but at least I can share with you that all of my ARK ETFs are safe!

[@_dyzzyvalle_3637]

Thats good to know, because Julien Bam, a german KZbinr with 5.75 Million subscribers was hacked, and now the channel tries to impersonate you.

[@ARKInvest2015]

@@_dyzzyvalle_3637 We encourage you to report any impersonators. For more information about these scams, please view our FAQ page: ark-invest.com/faq/

[@Shadow_Hiper]

Your hacked the KZbin Chanel: gonzok But he ido deshacked your

[@julianoguerramusica]

I got hacked and the videos pointed to this channel.

[@ozyildirim82]

As a shareholder of ARKK, ARKG and ARKF, i would like Cathie to talk about portfolio updates on a monthly basis. Given extremely aggressive trading Ark does and speed of companies coming in & going out of Ark’s conviction list, it would be great to hear Cathie’s view why they made the changes they did in their fund on a monthly basis. A few examples, Cathie says Palantir is great, very high conviction company and buys heavy after Q3 earnings at mid-high &20s. Then sells out completely after Q4 earning at the very bottom at low $10s. Same example for twitter, abbv and many others. ‘We are concentrating our portfolio’ isn’t a good enough answer for changing conviction list on a monthly/weekly basis. What happened to the long term view? Most trades look like buy high (momentum?) and sell low. I made a similar comment after last month’s video and i appreciate slow down in trades i noticed during the last month. I see much less daily trades in the recent reports.

[@Kilaueaorph4n]

You just answered yourself. Cathie buys high on hype, then sells low on fear when she realizes she has no clue what is happening. Also, ARKK has retuned LESS than the SP500 in the last 5 years, and even WAY LESS than Berkshire (Warren and Munger). Quite ironic that two old farts who supposedly lost their touch beat Cathie in just 5 years. So much for innovation 🤣. Save your remainder, cut your loses, and sell before they close the ETF. Good luck 👍

[@yoniziv]

As usual, you are the best! Thanks for sharing your thoughts and insights

[@tamirpdx]

Unbelievable commitment from Cathie to the community of relator investors. Thanks so much for the video and for taking care of 20% of my retirement that are invested in ARKK.

[@PirateKing1256]

You do know that it drop of drastically?

[@TickerSymbolYOU]

It's always great to hear a different take on what's going on with innovation and the markets, especially while innovation is on sale!

[@LjMeleed]

>Sells Palantir >buys Roku I ain't sold on Cathies idea of Innovation

[@JonathanRootD]

looks like she had to sell her mega mansion.

[@ducdao1679]

@@LjMeleed Why do you think Palantir is more innovative than Roku?

[@zacharyzoet3046]

Insert Spider-Man meme. "Hey I saw that on 'In the Know, with Cathie Wood!'"

[@platoscavealum902]

🎯

[@realdeal415]

Thank you Cathie. Stay strong!

[@faba6292]

I absolutely love these monthly series

[@Crom21]

been waiting for this video. Thank you

[@secretpersond8324]

Thank you Cathy for these videos, reinstalled my program in my head to keep thinking forward and going long.

[@beatnik1855]

Thankyou for sharing your research ! What are your opinions on the transportation crisis for all products. Is it no significance to you. Maybe i missed this topic?

[@likemysnopp]

”Domain experts, coming straight from college” how does that make sense? Nobody can be an expert straight after college…. I think calling them a expert is misleading your investors.

[@sk.n.9302]

I thought same, fresh out of school …?

[@timduncan8450]

There are some highly accomplished grad students and very smart at all levels. Jordan Perterson wrote Maps of Meaning and like a dozen peer reviewed papers while in school. A bit unconventional, probably not deep wisdom but they could have extrordinary topical knowledge

[@brainwashboi123]

Was waiting for this momma Cathie!

[@rozcapital639]

Thank you for sharing! Very insightful

[@globalana8951]

Always inspired and motivated after hearing Cathie speak. It would be great to here ARK’s take on CCP ‘s decision to change its secrecy laws in order to avoid US delistings.

[@rakibulhassan3616]

Always inspired and motivated after hearing Cathei speak.It would be great to hear ARK's take on CCP's decision to change its secrecy laws in order to avoid US delistings. I like your motivation speak. Thank you 💞💞

[@yuzhuzhang5123]

This should be the April 2022 version instead of March right.

[@teder1578]

thank you Cathie for being so transparent and sharing your insights!

[@anthonywong5494]

Thank you for your insight sharing. You inspire me in so many ways!

[@samsun01]

Tell Cathy to have the balls to debate with Peter Shiff.

[@rad0512]

Can someone please point me to the research justifying the specific stock picks in ARKK. There's plenty about TSLA, but I want to understand the convictions for the others.

[@Tinjinladakh]

As an 21 year old, Mrs Cathie is my role model.

[@JonathanRootD]

hopefully not when it comes to her anti labor and don't tax the rich politics.

[@johnkelley1426]

Open a Roth IRA and max it out every year. Time (compounding) will make you wealthy.

[@kabulbolan]

invest in QQQ and SP500 instead. Way better than crappy cathie lol

[@Cerventis]

Great to hear your team’s analysis. This is always so much richer than what MSM offers us. Cathie stitches it all together so well.

[@javiersedeno9397]

Thanks Cathie for all your knowledge

[@utherrexuy2359]

Thank you Cathy and all Ark team for these updates! Do you have an research of new food trends associated with vegetarians and vegans? You’ve mentioned food companies as if they were untouchable but there is an emerging movement that is creating huge new opportunities IMO

[@Blasco_Snap]

Short term investors will be calling Cathie a genius on the high ends of volatility and a fool on the low ends. Disruptive innovation is a rough sea to navigate and a lot of people will fall off, but Ark invest is sailing with skill and grace.

[@Blasco_Snap]

@@anthonyarcher7268 There's a big difference between rebalancing your portfolio and day trading. Day traders are practically just gamblers.

[@Blasco_Snap]

@@anthonyarcher7268 ARKK is up 191% over the last 5 years, despite recent volatility. Day traders can hardly match the S&P500 in the long term, if their portfolio is positive at all.

[@snookmeister55]

@@Blasco_Snap I would have been satisfied with 100% over 5 years. Those who don't appreciate Ark always have the S&P 500.

[@thechosenwon6762]

No it isn't

[@101ado]

@@Blasco_Snap check again! ARKK is already lagging the NASDAQ on a 5 year basis. Soon they'll lag the S&P too.

[@RatherBeSailing]

Excellent review, Cathie!!!!

[@lamart56]

Thank you for your transparency Cathie. It has made it easy to hold onto conviction during times of turbulence in the innovation market. I haven’t sold a dime of any of my ARK holdings and have continued to purchase shares of five of your ETF’s weekly.

[@tobyearth]

I'm so sorry.

[@jmiogo]

Please be careful. There's a long way these funds can still fall.

[@Kilaueaorph4n]

Get out of ARK asap! She keeps posting this videos to keep the money inflow into her ETFs. Without the flows of cash, they’re worthless just like the stocks. When they default, she’ll just retire with the 250M she made in fees during the pandemic.

[@kaikrist]

Thank you Cathy for the incredible insight in these volatile times when it is too easy to give up and just sell everything and sit on the sidelines not knowing which way to go.

[@screwcollege8474]

Thanks for the video Cathie Wood! Always good to be long on innovation and high growth stocks!

[@JS-bk4pn]

Not for the last year/14 months, now is a good time with ARKK so low and most growth stocks very low but the $QQQ $VOO and hell $XLE has outperformed big time. Berkshire Hathaway was the way too go when all the hype stocks were in massive bubbles.

[@method341]

She just got lucky with Tesla let's face it

[@jayson5561]

Thank you for doing these videos!

[@10xinvest12]

Love hearing your commentary! Thanks!

[@Freiheit1232]

Happy to have you in St. Pete

[@sdoofette]

Great Video with some greap points. Do you think we could go from time to time on some specifics, for instance UIPath and automation?

[@Dwilliams33]

Any comment on the 19 stocks in QQQ she believes are most disruptive? Besides TSLA.

[@pr5099]

Excellent review. Thank you for sharing your knowledge.

[@Wetoo338]

I truly like your honest and straightforward management style.

[@teslamr7333]

Does anyone know why the daily trades aren’t showing all the trades in the ARKK? I noticed TDOC position size has shrunk this week but it’s not showing in the daily trades.

[@Alex29713]

It can shrink when the other stocks gain more and tdoc gains less.

[@teslamr7333]

@@Alex29713 I am not talking about the position weighting, the actual shares held are less. On March 29th there was 11,430,443 shares of TDOC and on April 1st it was 11,139,055.

[@Alex29713]

@@teslamr7333 share count decreases with outflows.

[@danielmanahan692]

so what are we going to short next week?

[@nickz1413]

Hey Ms Cathie - Loved the exhaustive Analysis - Video presentation is a great opportunity to learn various factors affecting the US ECONOMY - the only question is - Can the published numbers be reliable ? - is it possible that some numbers could be politicized ? - can we take everything at FACE VALUE ?

[@ytubebrianahlers]

Yes! Thanks for bringing clarity to the what is going on in the markets. I really enjoyed listening to the difference between public and private evaluations of crypto exchanges. 3 - 5 years is my investment timeline (minimum)

[@shestolemythunder]

Thank you sharing definitly took notes to look things up later!!!

[@SimpleHumanLifestyle]

anyone can figure out the books on the shelves?

[@Twobrothersonevideo]

Cathie for the win always ‼️

[@davidanalyst671]

Cathie lost 50% of all the money invested with her in one year. So no, she lost actually.

[@alfredspaghetti4925]

@@davidanalyst671 she's fine. All her investors bought overvalued stocks.

[@kabulbolan]

Do you know how to read charts or are you high? Compare nasdaq and sp500 to ARK lol

[@ikechukwuezenekwe9730]

Great leader of our generation. I’m so glad to be here.

[@sarahboutin]

Happy Friday Cathie!

[@getbusy4u]

I have been following your lead for quite some time... The market has given me a wonderful opportunity to purchase several of ARK ETF's it's a great fire sale that I look forward to enjoying going forward. Thank you Cathy 😊 💓

[@julienrocher1]

Cathie and ARKs analyses of macro and micro events in relation to disruptive technologies is amazing. Interestingly The scope of Teslas business encapsulates a large percentage of the disruptive technologies in Cathie list!

[@richyin5470]

Why long term bond interest rate is a more objective metric and pull down the chance of aggressive FED’s interest hike?

[@scentilatingone2148]

Cathy you have a genuine disposition and I believe you are 💯 honest and believe what you present.

[@MJB0328]

Also she isn’t honest but arrogant. Lost money for so many people.

[@kabulbolan]

you must be high on coke. SP500 and nasdaq are both beating ARK by a whole lot lol.

[@groundedinfirstprinciples383]

@@MJB0328 only if you were "smart enough" to sell the dip. 😉

[@FabienGeorjon]

Experience speaks ;) Thank you for sharing!

[@chantalpique]

ALWAYS REALISTIC, INTELLIGENT, AND HONEST! I LOVE YOUR REPORTS! THANK YOU, CATHIE!

[@kabulbolan]

lol you must love losing money

[@DoflamingoTX]

Is this bot?

[@miatoinvestimentos]

Very informative!

[@jonathanh2o621]

When I think Cathie Woods & ARK Invest… the words, TRANSPARENCY, ADAPTABILITY and EXPONENTIAL thinking comes to mind!

[@P__114]

Is this a paid comment? Who writes like this?

[@sonofabutcher7003]

…also, INTEGRITY!

[@jonathanh2o621]

@@sonofabutcher7003 how could I forget that?! Nice call!

[@topdog5252]

True!

[@MJB0328]

Not transparent. TDOC shares went from 19 mil to 17 last two weeks. She never posted it.

[@wheresswitzerland]

Why aren't you showing the numbers your talking about on screen?

[@chantalpique]

LOVE YOUR INTRODUCTION; ELEGANT AND PLAYFUL!

[@tylertruski6549]

I sleep well at night investing in ARKK. Very VERY impressive team. Keep it up!

[@davidanalyst671]

You shouldn't!!! She lost 50% in ONE YEAR.

[@tylertruski6549]

@@davidanalyst671 up 550% in the last five years at the peak. I’m okay with some short term volatility.

[@boobyhill6921]

@@davidanalyst671 Let the clowns worship their clown. She lost she's loser. Got lucky and people think she's a genius. Remember a monkey beat them.

[@MJB0328]

160 to 50 ARKK.

[@carolsmalltherealtor3191]

Thank you Ms. Wood!

[@jinghuiniu7335]

Thank you Cathie!

[@Jaredbr88]

Many great points had to listen to this twice.

[@ginatrader8433]

Funny what you said about the 2yr/10yr yield curve and people suddenly talking about 3month instead. I've been wondering "Why did I never hear anyone mentioning this before?" So I appreciate your comment about being amused by this sudden switch. Thanks for the thorough view of everything!

[@stanstead_korea]

31:03 "is the bull market over" --> shouldn't be "is the bear market over" as implying new rise of bond market? Please confirm. Thank you Cathie and Ark!

[@richyin5470]

How an active transparent ETF is better than other active or passive fund? Like to understand more to that point.

[@i-i7722]

Amazing information.

[@RodTwitch]

Good stuff, thanks Mama C!

[@GBlunted]

no matter what these reports always seem optimistic and leave me feeling mostly positive about a lot of the American economy lol 🤔👍🏽😀

[@alsrt]

Auto parts supply shortages are real , we try to order something and parts are back ordered into August or the price of a part goes up 22% . The local Subaru dealer only has 6 new vehicles on the entire lot .

[@davidlcapo]

Thank you for the insight Cathie. One question though how can you say you don’t own the fangs when you hold some in ARKX?

[@kentaroyamada8505]

Thank you for what you do, Cathie! Always lovely seeing you!

[@S0vEr31gN_indvdl]

Time stamps please!

[@InvestingEducation]

She's right abt her longterm track record. Did a video on it some time ago.

[@heinrichwiedemann3646]

Have you guys looked into FBR a company that specialises in 3d printing houses with bricks and can finish a house in a day. how do they compare to other companies in the 3d house printing space?

[@antonioreid534]

I have disagreed with Cathie on monetary policy and government spending. However, I have never doubted her investment strategy. Cathie is right; growth and particularly disruptive innovation will win the day as each platform scales. Cathie and Ark are smart to have identified these reservoirs of transformation and wealth early. I will continue follow Ark closely. Thanks Cathie and Ark for your continued research and hard work!

[@farsight42]

Happy to continue buying all of the ARK funds! I love innovations and it is seriously lacking in a lot of businesses

[@WalayatFamily]

Keep buying to zero

[@cb4354]

@@WalayatFamily how its doubled the s and p 500 performance

[@Alex29713]

@@WalayatFamily impossible

[@Squirrel-zq6oe]

Wow I don't get all these haters. Pretty much trolls.

[@williamsinisterra4189]

@@WalayatFamily 70 buddy

[@nealm8322]

As always detailed view and summary of all the numbers and state of the economy. With yield curve inverted and numbers under the hood being so soft, you make a good case for the recession. In a recession scenario, wouldn't Ark holdings and funds would also suffer disproportionately... like 2000 and 2009. Wouldn't then it make sense to be invested more conservatively now and wait the recession storm to invest in Ark funds. Cathy I think you are making too good a case for recession!

[@jameshowell5365]

Depends on the type of investor you are. The go long strategy is DCA into the recession and out of the recession as nobody can predict the bottom. The only way to get a piece of it is to go long and hold. So it depends on how active you want to be and how long you have. If you are 60 years old, AARK is not for you. If you are 40, then it might be. I am with you though. I will be accumulating cash in various low yield investments (hoping inflation slows), some higher with UST/Anchor and will be wanting to enter 8-16 months from now but that takes a bit more work that the average retail investor wants to put in and comes with more risk of missing the turning points but more potential upside. That being said, love Cathy's vids. Great content. Us regular Joes would never have access to such a concise summary of what is truly going on without people like Cathy. Much obliged.

[@matthewabogado2834]

I'm still holding even though I'm 50% down.

[@wesley.Travis.Johnson.Reviews]

I would like to know y'alls opinion on IronNet IRNT .I know there's high risk being that they haven't and may never hold a profit but with their patents and connections to Amazon AWS and government contracts I feel they have what it takes to succeed and be disruptive in the Cyber Defense Sector. #CollectiveDefense

[@robferrara969]

I would love to hear you speak of some of your biggest trades. DNA 🧬, you bought over 50 mill shares from $8-$11. I watched this through your daily trades. I get why it’s down. Super high valuation from the spac. You bought a ton. Would love to hear your specifics of why?? Thanks.

[@ErnestoEduardoDobarganes]

I wish these were more frequent.

[@JorgeCruz-ox3ol]

Thank you miss! For the great video When i read the book the Richest Man in Babylon. Arkad said investing in long term is the Best way to get your rewards!

[@hiphophead8053]

I think the consumer sentiment decline is mostly due to housing and car prices that have ballooned up in the last 2 years. Especially in 21

[@fayolaricotta226]

Thank You!! my son and I look forward to your insight....

[@descartes451]

Always surprised at how polarizing Ark and Cathie Wood are to investors. I think she is innovative in her approach. I suppose if you don't agree with her thesis than you should not invest. In the aggregate, her record is quite good. You are buying into volatility with this thesis and I think there shouldn't be any surprise here that if growth stocks go down, so will ARKK. No big surprise and much safer than daytrading innovative companies. Good luck to all!

[@JasonSmith80513]

I love these videos! Thanks for doing them. By the way, I am not a bot.

[@joythought]

As another human non-bot person, I really appreciate Cathy's monthly videos.

[@JonathanRootD]

I am a bot.

[@yeoldmetalhead6592]

Exactly what a bot would say.

[@timob12]

Anyone else notice how she continues to say 5 year horizon. In 2021 she said 3-5 year return, in Mid 2022 she now says 5 years.

[@barkingshark6413]

Disruptive innovation being controversial is akin to not believing in tomorrow. You’re awesome Cathie…keep up the great work.

[@MrHel00]

Its her definition of disruptive innovation many people have an issue with

[@yeoldmetalhead6592]

Moors law sucka

[@robertfoertsch]

Amazing Analysis, Deployed Worldwide Through My Deep Learning AI Research Library… Thank You Cathie

[@MrFoxRobert]

Thank you!

[@Mrrockstarmeta]

Thank you

[@jaysteve4442]

Nice presentation 🙏🏽

[@zacharyzoet3046]

I teach a section of economic geography where I emphasize how innovation changes society. E.g., imagine how much society must change for supercharger stations to outnumber gas stations.

[@fropello4353]

averaging down hard. In Cathie we trust.

[@kuantam9707]

Thank you for your sharing

[@mahmoud6980]

The best video in the world

[@davesites893]

Great information.

[@rosennedev3678]

the only thing this is disrupting is your savings.

[@spitze3558]

Thank you Stay strong. You are the bes

[@jeffronium]

The intro is so satisfying

[@NK-iw6rq]

I love Cathie Wood and her vision of the future.

[@JamesHampton0]

💎 Diamond Hands bro 💎

[@johnnysolache2562]

Somehow I can see a resemblance in Nietzsche unsolved puzzle of the Will to Power vs The Will to Live(Will to Live, todays times), the Will to Power resembles Kirkhoff's Current Law (Parallel Circuit) and the Will to Live resembles a Series Circuit(todays structure). I can also see a resemblance of Kirkhoff's Current Law (Parallel Circuit) in DNA a-helix where out DNA naturally resemble the same system as a Parallel Circuit. Now that the world is not wasting much energy due to Bitcoin making Energy work for us a phenomenon is happening due to Quantum Computing. I also saw a resemblance in 1.5 Frequency and Frequency Tables working in a Parallel Circuit, I also saw a resemblance in the game Squash/Racket. We are living energy not of a materialistic world but a metaphysical world and Quantum Computing has showned us that in a form of Currency so that we can get to work on ACTION.

[@stevenchen8933]

Cathie, you are amazing!

[@JonathanRootD]

she has literally advocated against giving Walmart workers a raise.

[@Alex29713]

@@JonathanRootD source?