Cathie Wood, founder of Ark Invest, known as the “Goddess of Stocks”, said on Thursday (19th) that the rally in energy stocks will soon end, while reiterating her support for Tesla (TSLA) -US) bullish stance.
Although oil prices have fallen about 30% in the past six months, energy stocks have continued to rise. Wood believes that this means that the market has overvalued value stocks. From her perspective, the market has defied common sense.
The SPDR Energy ETF (XLE-US), which tracks energy stocks, rose 1.2% on Thursday and has gained nearly 40% over the past 12 months.
With the gradual increase of electric vehicles and the mileage of electric vehicles, and the advent of self-driving taxi services, Wood predicts that global oil demand may decline by 30% in the next five years, which will help Tesla continue to gain market share.
She also said that Tesla’s recent price cuts will also continue to put pressure on other automakers to follow suit, thereby hitting competitors.
When it comes to crude oil, Wood believes that the reason why oil prices can remain relatively stable is due to some factors, including China’s gradual opening up after canceling the zero-clearing policy, and the United States’ replenishment of the Strategic Petroleum Reserve (SPR). In order to stabilize oil prices, the United States released strategic oil reserves several times last year.
Last year, as the Federal Reserve (Fed) aggressively raised interest rates to hit technology stocks, Wood’s ARK Innovation Fund ETF (ARKK-US) plummeted nearly 67% for the year, the worst performance among Morningstar’s (Morningstar) tracking US stock funds. files. But ARKK is up 11 percent so far this year.