Cathie Wood, a star investor on Wall Street, took action this week to closely monitor the market and buy on dips.

Several ETFs under ARK Invest, Wood's flagship firm, purchased a variety of tech stocks amid the market downturn. The company manages $6.7 billion in assets and is a highly influential entity, although its funds have recently underperformed. Reports earlier this year showed investors have withdrawn a total of $2.2 billion due to lackluster fund performance.

Wood hopes to turn the tide. This week, at least two Ark Invest ETFs bought stocks of technology companies that had plummeted in the past month. The actively managed $ARK Innovation ETF (ARKK.US)$calculated at the opening price of the day of purchase, bought $Amazon (AMZN.US)$,$Advanced Micro Devices (AMD.US)$And.$Coinbase (COIN.US)$worth about $45 million of stocks in the company. The ARK Next Generation Internet Fund purchased $9.5 million worth of the same stock using the same calculation method. These two funds also bought other stocks. $Meta Platforms (META.US)$N/A.$Tesla (TSLA.US)$and $Robinhood (HOOD.US)$ The decline in technology stocks occurred simultaneously with the global stock market selloff, or some may argue that the former is the culprit. Last Friday, stock indices from Japan to the United States experienced sharp single-day declines. Since that time, Japan's Nikkei and yen

All of the aforementioned companies have been caught up in the sharp market sell-off that has spread throughout the market. It remains to be seen whether Wood bought the stocks at a low price or at the start of the market collapse.

"She might be right, or she might be wrong. It's both," said George Kailas, CEO of Prodos Pharos.

Kailas referred to ARK Invest's bet on Tesla, which made a lot of money when Tesla's stock price rose in 2021. However, the company's performance has been disappointing since then. The Next Generation Internet Fund, which invested in cloud-related internet companies, has fallen 2% this year. Meanwhile, its flagship fund, the ARK Innovation ETF, has fallen nearly 20% this year. These two ETFs have not reached the highs they achieved in 2021.

have rebounded slightly, but it is not enough to allay the fears of some investors that the stock market may just be experiencing a short-term rebound.$S&P 500 Index (.SPX.US)$Wood hopes to turn the tide. This week, at least two Ark Invest ETFs bought stocks of technology companies that had plummeted in the past month. The actively managed stocks of $100-300 billion products respectively.

"I think it's a dead cat bounce," said Gene Goldman, chief investment officer of financial services company Cetera. Goldman predicts the S&P 500 index will fall "10% or more from peak to trough."

Kailas also agrees but is more cautious. He said that if he had to choose a direction for the stock market, it would be "slightly bearish."

Like Wood, a group of long-term growth investors also see the current state of the market as an opportunity.

UBS Group said in an analyst report on Thursday that many tech companies' fundamentals remain strong despite market turbulence, making their falling stock prices quite cheap. "We believe that the fundamentals of technology stocks remain solid and valuations have been readjusted lower," the analyst wrote.

UBS predicts that second-quarter earnings growth in the global tech industry will be 20-25% higher than in the same period last year. The bank also expects profits to continue to grow by 15-20% in the next year and a half.

However, even investors who want to sell are acting with caution. Paul Meeks, a well-known tech stock investor and former portfolio manager, said, "I haven't bought yet. Although I like the price, I don't like the timing."

In the United States, investors were surprised when the Federal Reserve chose to postpone interest rate cuts in July. Currently, the market sees the interest rate cut in September as almost certain.

UBS still bullish on tech stocks, partly due to its so-called "technical factors," which are more related to the macroeconomy than individual companies themselves.

For Kailas, there are other macro factors that worry him, primarily the US elections. "The really difficult part is we've seen a pullback, which I think is related to politics and geopolitics," he said.

Trying to predict any election result can be a headache for investors. However, this time around, both a Republican or Democratic presidency could mean greater uncertainty for the future of the tech industry.

No potential government has offered a clear plan for tech regulation, said Meeks.

The Democrats have shown determination to regulate large technology companies, which is unprecedented to a large extent. On the other hand, Democratic presidential candidate and vice-president Harris has close connections with some important figures in Silicon Valley.

At the same time, the Republican candidate himself also faces uncertainty. Vice presidential candidate JD Vance was a venture capitalist and has received support from influential technology companies such as Peter Thiel. However, former President Trump has proposed comprehensive tariffs which could be devastating to some technology companies.

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