March 11 – Cathie Wood’s Ark Invest made strategic purchases on Monday amid a tech market meltdown. According to the news release, the firm acquired shares of Tesla (TSLA, Financial), Palantir (PLTR, Financial), Coinbase (COIN, Financial), Advanced Micro Devices (AMD, Financial), Tempus AI (TEM, Financial) and Robinhood (HOOD, Financial).
The trades came as investor sentiment turned cautious, following a day when the Magnificent 7 shed over $750 billion in market capitalization. Economic uncertainties and recession fears have fueled widespread selling, creating buying opportunities for savvy investors.
Wood forecasted a deflationary boom in the second half of the year, viewing the current downturn as the final phase of a rolling recession. She believes that market volatility now could pave the way for increased policy flexibility by regulators and the Fed.
Analysts note that Ark Invest’s approach exemplifies the buying the dips strategy during periods of market stress.
This article first appeared on GuruFocus.