ARK Invest CEO Cathie Wood believes digital wallets and blockchain technology were among the “breakthrough innovations” largely ignored by stock markets in 2022.
In a January 12 blog post on the ARK Invest website, Wood suggested the stock market faced a "wall of worry" in 2022, caused by entrenched inflation fears and higher interest rates and largely ignored. measure some innovative technologies.
Wood highlighted that digital wallets are "replacing cash and credit cards," noting that they have overtaken cash as the main transaction method for offline commerce in 2020.
As well as arguing that digital wallets should not be overlooked, Wood noted that they also accounted for roughly 50% of global online commerce in 2021.
After the most difficult year in the history of the stock market for innovation-based strategies, we have just sent our clients this letter highlighting the innovative technologies that are already transforming the world. In our opinion, innovation solves problems! https://t.co/YdBiIZhY0D
—Cathie Wood (@CathieDWood) January 13, 2023
Wood suggested that the recent FTX crypto exchange collapse it has not affected the larger mission that public blockchains were intended for. She noted:
"Public blockchains like Bitcoin and Ethereum have not missed a beat in processing transactions."
Wood highlighted how the FTX collapsed educated crypto investors to be more diligent with where they store their crypto assets, saying the share of trading volume on decentralized exchanges, which allow trading without a central intermediary, increased 37%, jumping from 8.35% to 11.4%.
Wood said he had never, in his "30 years working in portfolio management," experienced such volatile market conditions, saying he had never seen "markets so dislocated."
The CEO suggested that the economy is facing a challenging situation, with a decline in the money supply, a drop in commodity prices and a "recovery" of inflated inventories, indicating a slowdown in inflation and possibly even a deflation.
Related: Visa Dreams Plans To Let You Pay Bills Automatically From Your Crypto Wallet
Wood noted in the report that fear is high among investors who say investors have "high levels" of cash not seen since the September 11, 2001 crisis.
Other "breakthrough" innovations that Wood believed the stock market "largely ignored" in 2022 included artificial intelligence, electric vehicles, space exploration and 3D printing.
She believes that despite the uncertainty in the marketplace, “problem-solving” disruptive innovation technologies have historically “gained share in turbulent times.”
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