In a recent investor webinar, Cathie Wood shared her perspective on how a potential second term for Donald Trump might influence the IPO market.
What Happened: Wood expressed optimism about the future direction of the market.
“If the market continues to move forward in the way we believe it will…we believe that the IPO market will open up and that will give us a chance, lots of opportunities to diversify our portfolios and it will give our venture funds liquidity events that they have not enjoyed during the last four years,” she said.
Her comments, made during a session released on Friday, come at a time when the market is experiencing increased volatility that anticipated the effect of a second term of Trump on the Wall Street.
See Also: GOP Megadonor Ken Griffin Is ‘Open To The Possibility’ Of Selling Minority Stake In Citadel
Why It Matters: Wood’s comments contrast that of investor Chamath Palihapitiya who feels that there won’t be the mega IPOs expected.
“The IPO market is what the IPO market is. And if the 10 year is back to 4.5-5%, that’s not a compelling strategy for some SaaS company or some internet business that didn’t take an opportunity to go public when rates were at zero. So if you just look mathematically at what the actual fair value of these companies should be, I don’t know, it’s not like such a great IPO market,” he said during one of the recent episodes of the All-In Podcast.
Investors are keenly observing which of Trump’s campaign promises might translate into policy actions. While some pledges, like reducing corporate taxes and deregulation, could benefit the economy and stock prices, others, such as strict immigration policies and high tariffs, might pose economic challenges.
Former Treasury Secretary Larry Summers has warned that Trump’s proposed economic policies could lead to significant economic disruption. In a recent interview, Summers expressed concerns about the potential for a massive demand-side stimulus and substantial supply-side disruptions. He emphasized that if implemented, Trump’s program could result in a larger inflation stimulus than any measures enacted by President Joe Biden.
Price Action: Meanwhile, S&P 500 and NASDAQ tracked by SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) have gained 2.88% and 2.26% respectively, in the month of November.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Ark Invest
