ARK Invest (ARKK) CEO Cathie Wood specializes in adding groundbreaking technology stocks to her company's various ETF portfolios. Wood has been particularly fervent about scooping up shares in the electric vehicle company Tesla (TSLA) in its earliest days, championing the stock despite ups and downs in value.
But in the wake of the Fed hiking up interest rates to combat high inflation rates, Wood has had to defend the cost of shares in the company's ETFs. When she did so, she revealed a hot technology stock that she believes is an excellent buy in today's uncertain economic climate--the Square Cash App.
"What we're seeing with the Block[s] Square [and] Cash App [are] two things--it is reducing the cost of financial services, so more people are flocking to it," she explained. "And in fact, [Square Cash is] developing a closed-loop ecosystem, and we believe could be one of the big winners in the digital wallet space. [Its] clients won't have to interact with banks."
"Cash App and Square will take care of that and really become the financial services company," Wood believes.
Despite rising interest rates, Wood remains optimistic about the future. "We actually think we're in very good shape and that interest rates coming down is going to be another booster again," she told the show's hosts.
"It's the valuation of the last year that has been so severe to our strategy[...] and that was all related to the Fed jacking up interest rates 19-fold in less than a year." Still, she predicted a difficult "six to nine months" of future performances.
