Cathie Wood Finds Silver Lining in Trump’s “Shock Therapy” Tariff Plan

Renowned investor and hedge fund manager Cathie Wood has shared her thoughts on President Trump’s tariff plan. While many are concerned about its implications, Wood sees a silver lining and believes the policy could bring some unexpected benefits.

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For context, Cathie Wood is the founder and CEO of ARK Invest, a U.S.-based investment management firm known for its high-conviction bets on disruptive innovation.

Wood Backs Trump’s Tariff Policy

Wood believes that Trump’s tariff policy, which is seen as one of the biggest and harshest tax hikes in U.S. history, could bring some long-term benefits.

Her outlook shifted after Trump tapped Treasury Secretary Bessent to take over trade talks with allied countries. This role was earlier assigned to Peter Navarro and Howard Lutnick. According to Wood, the confusion around the policy may have been part of a bigger plan. Whether intentional or not, she says this “shock therapy” might have pushed countries to the table for serious talks. She also noted that these talks could lead to lower tariffs and fewer trade barriers, which was unlikely without the initial tariff push.

Lastly, Wood thinks the sharper-than-expected drop in activity could push policymakers to respond with tax cuts, fewer regulations, and lower interest rates.

Wood’s Recent Trades amid Tariffs

Earlier this month, Wood capitalized on dips in Nvidia (NVDA) and Amazon (AMZN) stocks by adding these shares to her ARK Invest ETFs. Additionally, ARK Invest increased its holdings in Robinhood (HOOD) and GitLab (GTLB) during the market selloff triggered by tariffs.

Last week, Wood encouraged investors to back innovative companies like Palantir (PLTR) and Tesla (TSLA), saying they’re well-positioned to weather economic slowdowns.

Which ARK Investment Stock Holds Wall Street’s Strong Buy Rating?

According to TipRanks’ Stock Comparison Tool, Wall Street has a Strong Buy rating on NVDA, AMZN, and GTLB stocks. Among these, GTLB stock offers the highest upside potential of 77.5% from current levels. Meanwhile, NVDA stock presents an upside of 54.3% and carries a positive Hedge Fund Signal.

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