This week, as AI trading in U.S. stocks sharply declined and the Nasdaq Composite Index fell into a correction zone, ARK Invest CEO Cathie Wood chose to increase her holdings against the market trend.
On Friday, November 6, Cathie Wood stated in an interview with CNBC that the widespread concerns among investors have not shaken her confidence; rather, they have reinforced her belief in the continuation of the bull market.
The more worried the market is, the more optimistic I am, as this often means the bull market is more sustainable. I do not believe this round of the bull market has derailed.
On Friday, technology stocks experienced a slight rebound, but market sentiment remained fragile. Wood believes that the current volatility is a normal rhythm in the process of technological revolution, characterized by "two steps forward, one step back," and anticipates that the stock market will maintain its upward trend until 2027. Wood advises investors to take moderate profits during rebounds and to increase their holdings of high-conviction positions during downturns; ARK has recently increased its positions in key assets like SpaceX.
What Caused the Recent Decline
The sell-off on Thursday was directly triggered by the market's concerns over potential slowdowns in data center construction following the Democratic takeover of Congress.
However, Wood pointed out that the anxiety surrounding AI has permeated most of this year—investors have continuously questioned tech companies' capital expenditures on AI, their cash burn rates, and the trend of hyperscalers transitioning from extremely high positive free cash flow to negative free cash flow. "This has made the market uneasy for quite some time," she said.
Meanwhile, macroeconomic pressures are also intensifying. The conflict between the U.S. and Iran has increased global inflation, and U.S. interest rates and bond yields have risen sharply this year, along with corporate bond yields. "Part of the reason for this adjustment is what's happening in the bond market," Wood said.
"Wall of Worry" Makes Bull Market Healthier
Wood referred to the prevailing pessimism in the current market as a "wall of worry," but her interpretation is quite different from that of most people. She compared it to her personal experience:
I experienced the tech and telecom bubbles, during which almost no one was worried. That was in the 1980s and 1990s, during a bull market when people simply assumed prices would skyrocket. But the evolution of trading in AI is completely different.
In her view, it is precisely this "wall of worry" that makes the current bull market healthier. She also identified the "builders" of this wall:
This wall of worry was built by senior leaders in finance—they were very young during the bubble period. It is the veterans in the industry that have kept this wall standing, which is not a bad thing. Now, bond investors have also joined in.
She further explained that bond investors in the past did not need to have a deep understanding of the tech industry because back then it was about software, applications with low fixed costs and viral growth, yielding high profit margins.
But AI has high fixed costs, so bond investors are undergoing a journey into the tech world, which is quite unfamiliar to them.
Limited Impact of Interest Rate Hikes, Growth Logic Unchanged
Faced with the pressure of rising interest rates, Wood believes that AI hyperscale cloud companies have their unique buffering mechanisms.
If a company believes that taking on debt can accelerate its growth momentum or enhance its growth rate, then changes in interest rates are almost irrelevant to those companies.
When asked if the bull market is nearing its end, Wood's answer was short and direct: "I don't think so."
"I believe we are in the middle of a technological revolution," she said, citing the development of autonomous taxis and AI agents as evidence.
ARK's Actual Operations: Increasing High-Conviction Positions
Wood is not just verbally optimistic; ARK has taken action during the recent volatility.
She revealed that ARK has been focusing its positions on the highest conviction targets over the past week or so.
Our position in SpaceX has already increased. If there is any impact from the controversies surrounding data centers on Earth, it's that they provide greater opportunities for space data centers.
For ordinary investors, she provided a specific operational framework:
In a volatile environment, take moderate profits during rebounds; if you see a downturn and have already taken profits, you will have the psychological confidence to re-enter the market.
Looking ahead to 2027, Wood maintains an optimistic outlook: "The revolution will become increasingly clear, and I believe the market will perform well."
Notably, Wood's flagship product, the ARK Innovation ETF, rose over 35% in 2025, significantly outpacing the S&P 500's 16.4% increase and the Nasdaq Composite's 20.5% increase during the same period.
Risk Disclaimer and Exemption Clause
The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial circumstances, or needs of individual users. Users should consider whether any opinions, perspectives, or conclusions in this article align with their specific situation. Investing based on this advice is at their own risk.
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