After being targeted by Michael Burry, the prototype of the movie "Big short", the bull queen "wooden Sister" Cathie Wood shouted in a series of tweets on Tuesday.

Fearless of bears, "wooden Sister" strongly supports innovative investment ideas:

Based on fundamental analysis, Michael Burry made an excellent judgment during the subprime crisis.However, I don't think he understands the fundamentals of innovation, which create explosive growth and investment opportunities.

In our view, ARK is committed to the areas of innovation that were sown during the dotcom bubble. These technologies have been conceived for more than 20 years and should change the world in the next 10 years.

If we are right, GDP and revenue growth will slow down until opportunities for emerging technologies start to drive macro indicators. In this environment, innovation-based strategies will stand out.

"wooden Sister" also saidInflation is temporary, and she even expects deflation in the face of falling commodity prices, a stalemate in US tax reform and a take-off in innovation, making her a tiny minority on inflation:

Deflation in commodity prices is cyclical but is exacerbating the long-term forces caused by technology: subversive innovation ("good deflation") and creative destruction ("bad deflation").

The prices of some commodities have been falling since mid-may: timber is down 65% to 70%, copper is down 10% to 15%, and oil is down 10%. The unexpected appreciation of the dollar is also bad for commodity prices. The Manheim used car index, which is a leading indicator of new car sales, is falling.

When headline inflation falls and / or fears of recession intensify, stocks may once again prefer subversive innovation strategies. If the bond market is right, one or all of these two points (falling headline inflation and heightened fears of recession) will become apparent in the next three to six months.

Most bears seem to think that inflation will continue to accelerate, shortening investment deadlines and depressing valuations. However, we believe that inflation is related to the supply chain and is only a short-term outbreak. Both the stock and bond markets have also risen since March.

According to 13F regulatory documents released last day, Scion Asset Management, led by Burry, shorted ARK Innovation ETF (ARKK), the main fund of wooden Sister, in the second quarter of this year, holding its put options of 235500 shares, with a market capitalization of nearly $31 million. In addition, Scion also stepped up its efforts to short Tesla, Inc., a heavy stock in ARKK. In the second quarter, the number of Tesla, Inc. put options reached 1.0755 million shares, with a market capitalization of about $731 million, and the number of put shares increased by more than 34% from 800100 shares in the first quarter.

ARKK focuses on companies that apply revolutionary technologies such as artificial intelligence, robots, electric vehicle finance technology, 3D printing and blockchain. In addition to Tesla, Inc., ARKK has also invested in growth stocks such as Zoom, the teleconferencing software company, and Coinbase, the largest cryptocurrency exchange in the United States.

ARKK was one of the best-performing ETF in the US market last year, with an increase of 149% last year and a tenfold increase in management. This growth rate is unprecedented among active ETF funds, so the "wooden Sister" was once praised as the "female version of Buffett" by the US media.

ARKK's fund's returns fell after late February, as technology growth stocks rose sluggishly. By the trough of early may, it was down more than 30% from its high in early February, but has rebounded since then. The end of June roughly returned to the level of early March, rising more than 9% throughout the second quarter and falling from the beginning of this year to Friday.

The lacklustre performance made investors lose confidence and bears took advantage of the opportunity to pour in. Data from early August showed that shorting ARKK hit a record high. A new ETF, contrary to the "wooden Sister" bet, submitted an application for listing to the US Securities and Exchange Commission (SEC), highlighting the growing suspicion of "wooden Sister" in the market.