U.S. tech investor Cathie Wood is urging Donald Trump’s incoming administration to enhance economic growth and provide policy certainty by backdating promised corporate and personal tax cuts to Jan. 1, 2025, she told Reuters.
Wood’s flagship ARK Innovation exchange-traded fund (ARKK.P) has surged 17% since Trump’s election victory, fueled by expectations of policies that could benefit its holdings.
Electric carmaker Tesla and crypto exchange Coinbase, two of ARKK’s key stocks, have already gained 54% and 7% respectively since Nov. 6, compared to a 1.7% rise in the S&P 500.
ARKK’s other major holdings, including Robinhood and Block, stand to gain from friendlier crypto and AI policies under Trump’s administration.
Wood has publicly supported Trump’s economic platform, emphasizing its focus on innovation, deregulation, and cost reductions.
“I see them saying, okay, we’re going to cut taxes but we will make them retroactive to Jan. 1, 2025. That would be very helpful, I think, in terms of providing certainty for the markets,” Wood stated.
She warned that without retroactive tax cuts, companies and individuals might hold back on spending or investments.
While Wood does not generally support tariffs, she views Trump’s tariff threats as a negotiating strategy.
Tax Reform and Pro-Innovation Policies on the Horizon
Trump is expected to implement key policies through executive orders after his Jan. 20 inauguration, while a Republican-controlled Congress pursues tax reform.
Although Wood did not financially back Trump in the 2024 election cycle, she has been in contact with Tesla CEO Elon Musk and Senator Cynthia Lummis, both of whom are shaping Trump’s pro-innovation agenda.
Wood remains optimistic about AI and autonomous technologies, describing them as key drivers of investment returns.
“We’re telling people that, hey, we offer a highly differentiated exposure to innovation. Yes, we’re going to be volatile,” Wood acknowledged.
