Cathie Wood is all about disruption, which is why she laments what is happening to the Nasdaq.
The Ark Invest financial guru has repeatedly called out the Nasdaq for no longer being the disruptive force it was envisioned to be, and Wood believes that the reason the major indices have become more risk averse is the tech and telecom bubble from the late 90s.
"The Nasdaq and S&P 500 are beginning to look a lot more alike. We are what the Nasdaq used to be in the 80’s and 90’s. So when you don’t see FAANGs in our portfolio, we don’t see that as being disruptive, meanwhile they are cornerstones of the Nasdaq and S&P 500. We are the place for pureplay and broad disruptors," Wood said during a Twitter Spaces interview with Pensions & Investments Tuesday.
FAANG -- the acronym coined to represent Facebook (META), Apple (AAPL), Amazon (AMZN), Netflix (NFLX) and Google (GOOG) -- used to be the disruptors, according to Wood, but now there's a "while new layer of disruption heading for them."
"During the 80's and 90's that was a time a real innovation. The investment industry has moved into risk adverse mode and rely more on benchmarks, which they didn't really use before the tech and telecom bust," Wood said. "We have been in a linear growth world for the past 50 years. The only time investors heard about exponential growth and it didn't end well."
