After the sharp decline in the US stock market, "Cathie Wood": The more the market worries, the more optimistic I am; the bull market is not over

This week, as AI trading in the U.S. stock market plummeted and the Nasdaq Composite Index fell into correction territory, ARK Invest's leader Cathie Wood chose to increase her positions against the trend.

On Friday, November 6, Cathie Wood stated in an interview with CNBC that the widespread concerns among investors not only did not shake her confidence but instead reinforced her judgment on the continuation of the bull market.

"The more the market worries, the more optimistic I become, because it often means the bull market is more sustainable. I do not believe this bull market has derailed."

On Friday, tech stocks saw a slight rebound, but market sentiment remained fragile. Wood believes that the current volatility is a normal rhythm of "taking two steps forward and one step back" in the process of technological revolution, and she expects the stock market to continue its upward trend until 2027. Wood advises investors to take moderate profits during rebounds and to increase positions in high-conviction holdings during downturns; ARK has recently increased its positions in core holdings like SpaceX.

What Caused This Round of Decline

The sell-off on Thursday was directly triggered by concerns that the construction of data centers may slow down after the Democrats take control of Congress.

However, Wood pointed out that the unease surrounding AI has permeated much of this year—investors have continuously questioned the scale of capital expenditures by tech companies on AI, the speed of cash burn, and the trend of hyperscalers moving from very high positive free cash flow to negative free cash flow. "This has made the market uneasy for quite a long time," she said.

At the same time, macro-level pressures are also intensifying. The U.S.-Iran war has driven up global inflation, and U.S. interest rates and bond yields have risen significantly this year, leading to higher corporate bond yields. "This round of adjustment is partly due to what is happening in the bond market," Wood said.

"Wall of Worry" Makes the Bull Market Healthier

Wood refers to the prevailing pessimism in the current market as the "wall of worry," but her interpretation is quite different from that of most people. She compares it to her personal experiences:

"I have experienced the tech and telecom bubbles, when almost no one was worried. That was in the 80s and 90s, during a bull market, and people just assumed it would keep rising to the sky. But the evolution of AI trading is completely different."

In her view, it is this "wall of worry" that makes the current bull market healthier. She also named the "builders" of this wall:

"This wall of worry has been built by senior leaders in the financial industry—they were very young during the bubble period. It is the veterans in the industry that have kept this wall standing, and that is not a bad thing. Now, bond investors have also joined in."

She further explained that bond investors did not need to understand the tech industry deeply in the past because it was software, which had low fixed costs and viral applications with extremely high profit margins.

But AI has high fixed costs, so bond investors are experiencing a journey into the tech world, which is quite unfamiliar to them.

Limited Impact of Interest Rate Shock, Growth Logic Unchanged

In the face of rising interest rate pressures, Wood believes that AI hyperscale cloud companies have their unique buffering mechanisms.

"If a company believes that leveraging debt can accelerate its growth momentum, meaning it can enhance its growth rate, then how interest rates change is almost irrelevant to these companies."

When asked if the bull market is nearing its end, Wood's answer was short and direct: "I don't think so."

"I believe we are in the middle of a technological revolution," she said, citing the development of autonomous taxis and AI agents as evidence.

ARK's Actual Operations: Increasing High-Conviction Positions

Wood is not just verbally optimistic; ARK has taken action amid recent volatility.

She revealed that ARK has been concentrating positions in the highest conviction targets over the past week or so.

"Our position in SpaceX has increased. If there is any impact from the controversy over data centers on Earth, it is that it has created greater opportunities for space data centers."

For ordinary investors, she provided a specific operational framework:

"See a rebound in a volatile environment and take moderate profits; see a decline, and if you have already taken profits, you have the psychological confidence to re-enter."

Looking ahead to 2027, Wood maintains an optimistic judgment: "The revolution will become clearer, and I believe the market will perform well."

It is worth mentioning that Wood's flagship product, the ARK Innovation ETF, rose over 35% in 2025, far exceeding the S&P 500 Index's 16.4% increase and the Nasdaq Composite Index's 20.5% increase during the same period.

Risk Warning and Disclaimer

Markets carry risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk.