Ark Invest’s CathieDWood told ScottWapnerCNBC the technology companies in her innovation-focused portfolio are drastically undervalued. “We do believe innovation is in the bargain basement territory.”
"Today we have investors doing the opposite of what they did in the late '90s. They are running for the hills. It's risk-off because of inflation and interest rates. And the hills are their benchmarks. They are running to the past," Wood said.
"If we are right and the disruptive innovation that is evolving is going to disintermediate and disrupt the traditional world order, those benchmarks are where the risk is. Not our portfolios," she added. Despite the big underperformance, her ARKK has attracted more than $70 million in net inflows year to date, according to FactSet.
The innovation investor said she believes the inflationary drag on growth stocks will end ultimately and that deflationary forces will return. "A lot of what's going on is supply chain related," Wood said. "I do think the deflationary forces building in the economy are pretty strong."