Cathie Wood drops a big clue about where ARKK is headed next

Core Insights - Cathie Wood's investment strategy focuses on long-term technology cycles rather than short-term gains, emphasizing a unique approach during risk-off market conditions [1][2][8] - The strategy prioritizes sectors related to the "future of finance" and "future of compute," indicating a strong belief in the potential of stablecoins and AI infrastructure [2][3] Investment Strategy - Wood's approach is characterized by aggressive investment during risk-off periods, suggesting a willingness to lean into market downturns [2] - The emphasis on stablecoins is highlighted by their transaction value of $15 trillion last year, surpassing both Visa and MasterCard, indicating a significant shift in financial infrastructure [3] Market Performance - As of February 11, ARKK was trading at approximately $70.17, reflecting a decline of about 2.9% from an opening price of $72.73, with an intraday low of $69.36 [4] - The performance of related sectors shows small caps down by 0.96% and software down by 3.30%, while the tech sector saw a slight increase of 0.19% [6] Volatility and Risk Tolerance - Wood's investment philosophy accepts volatility as a natural part of innovation, suggesting that significant profits can be made by being early in the investment cycle [8] - Traditional fund managers often stick closely to benchmarks, particularly in risk-off environments, contrasting with Wood's more flexible approach [9]