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Cathie Wood says inflation will ‘unwind pretty quickly’ and that stocks will probably be fine — here are 3 of her top picks to keep riding the bull

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Cathie Wood says inflation will ‘unwind pretty quickly’ and that stocks will probably be fine — here are 3 of her top picks to keep riding the bull

Cathie Wood, superstar stock picker and CEO of investment firm ARK Invest, believes the stock market is in a bull run that will continue putting smiles on the faces of investors — so long as the U.S. can avoid a recession.

Despite the sky-will-fall predictions of investors like Michael Burry, Wood recently told Barron’s that the market is “probably going to be fine,” explaining that value stocks, cyclical stocks and defensive stocks all continue to climb despite what COVID-19 and a disrupted economy have been able to throw at it.

Inflation, she said, will “unwind pretty quickly.”

Despite recent turbulence, Wood’s most well-known ETF, ARK Innovation, is up roughly 118% over the last three years. Let’s look at three companies the fund holds significant positions in that should benefit nicely from a continued bull run.

You might even be able to get a piece of them with some of your extra cash.

Shopify (SHOP)

Laptop computer displaying logo of Shopify Inc., a Canadian multinational e-commerce company headquartered in Ottawa, Ontario

monticello/Shutterstock

Wood believes Canadian e-commerce giant Shopify is in a position to challenge the space’s biggest player, Amazon, in the coming years. Thanks to its differentiated service and first-mover advantage, Shopify’s upside remains attractive according to Wood.

“We’re trying to figure out how Amazon is going to deal with this notion of individuals seeing something on Instagram or elsewhere on Facebook or on Twitter, or on Snap and just buying there,” Wood recently told BNN Bloomberg. “That’s a Shopify-enabled commerce opportunity and we think it’s going to be big.”

Shopify is already pretty big. In Q3, the company raked in over $1.1 billion in revenue and currently boasts a market cap greater than $180 billion.

The company’s stock is up about 22% this year, which is good news for ARKK investors. The fund holds more than 425,000 shares in Shopify.

Block (SQ)

Square Point of Sale and Square for Retail apps are seen on an iPhone.

Tada Images/Shutterstock

If there’s one thing Cathie Wood’s a fan of, it’s disruption. And Block (formerly known as Square) is positioned to be one of the fintech industry’s biggest disruptors.

Block started out as a digital payment platform, and is still among the space’s leaders, but its expanded slate of products — the ever-evolving Cash App, recent offerings for making crypto investing easier, the recently acquired Afterpay — should allow the company to occupy a growing role in an increasingly cashless global economy.

Block’s Q3 gross profits came in at $1.13 billion, a year over year increase of 43%. But the company’s share price has been all over the place this year. It’s currently down about 25% year to date.

Block still takes up a fair amount of space in ARKK — about 3.3 million shares’ worth, which accounts for 3.3% of the portfolio.

DraftKings (DKNG)

View of DraftKings app on a smartphone.

Lori Butcher/Shutterstock

If you’re willing to bet on the stock market, it makes a certain kind of sense to target a company that has gambling at the heart of its business.

Sports betting is booming — particularly online. The industry generated about $131 billion in revenue in 2020, according to Zion Market Research, and is projected to grow to almost $180 billion by 2028.

As one of the leading fantasy sports and online bookies in the space, DraftKings stands to be at the forefront of that growth.

In Q3, it expanded its operations into three additional states and brought in revenue of $213 million, a 60% increase compared to the same period last year.

Wood continues to like what she sees. In addition to ARKK holding more than 12.1 million DraftKings shares, she recently added another 55,400 shares in the company to the Ark Fintech Innovation ETF.

A finer alternative

To be sure, growth stocks can be extremely volatile. And not everyone feels comfortable holding assets that make wild swings every week.

If you want to invest in something that has little correlation with the ups and downs of the stock market and the crypto market, you might want to consider an overlooked asset: fine art.

Contemporary artwork has already outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultra-rich, like Wood. But with a new investing platform, you can invest in iconic artworks, too, just like Jeff Bezos and Bill Gates do.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Teladoc Tumbled 38% After Big First-Quarter Loss. Is It Just a Pandemic Play?

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After pandemic drop, Canada’s detention of immigrants rises again By Reuters

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© Reuters. FILE PHOTO: Two closed Canadian border checkpoints are seen after it was announced that the border would close to “non-essential traffic” to combat the spread of novel coronavirus disease (COVID-19) at the U.S.-Canada border crossing at the Thousand Isla

By Anna Mehler Paperny

TORONTO (Reuters) – Canada is locking up more people in immigration detention without charge after the numbers fell during the pandemic, government data obtained by Reuters shows.

Authorities cite an overall rise in foreign travelers amid easing restrictions but lawyers say their detained clients came to Canada years ago.

Canada held 206 people in immigration detention as of March 1, 2022 – a 28% increase compared with March 1 of the previous year. Immigration detainees have not been charged with crimes in Canada and 68% of detainees as of March 1 were locked up because Canada Border Services Agency (CBSA) fears they are “unlikely to appear” at an immigration hearing, according to the data.

The rise puts Canada at odds with Amnesty International and other human rights groups that have urged Ottawa to end its use of indefinite immigration detention, noting CBSA has used factors such as a person’s mental illness as reason to detain them.

A CBSA spokesperson told Reuters that “when the number of entries (to Canada) goes up, an increase in detention is to be expected.” CBSA has said in the past it uses detention as a last resort.

A lawyer told Reuters her detained clients have been in Canada for years.

In the United Kingdom, too, immigration detention levels rose last year after dropping earlier in the pandemic, according to government statistics. Unlike Canada, the United States and Australia, European Union member states have limits on immigration detention and those limits cannot exceed six months.

The rise in detentions puts people at risk of contracting COVID-19 in harsh congregate settings, refugee lawyers say.

Julia Sande, Human Rights Law and Policy Campaigner with Amnesty, called the increase in detentions “disappointing but not surprising,” although she was reluctant to draw conclusions from limited data.

The number of immigration detainees in Canada dropped early in the pandemic, from a daily average of 301 in the fourth quarter (January through March) of 2019-20 to 126 in the first quarter (April through June) of 2020-21.

FEW NO-SHOWS AS DETENTIONS DROPPED

Detaining fewer people did not result in a significant increase in no-shows at immigration hearings – the most common reason for detention, according to Immigration and Refugee Board data.

The average number of no-shows as a percentage of admissibility hearings was about 5.5% in 2021, according to that data, compared to about 5.9% in 2019.

No-shows rose as high as 16% in October 2020, but a spokesperson for the Immigration and Refugee Board said this was due to people not receiving notifications when their hearings resumed after a pause in the pandemic.

Refugee lawyer Andrew Brouwer said the decline in detention earlier in the pandemic shows Canada does not need to lock up as many non-citizens.

“We didn’t see a bunch of no-shows. We didn’t see the sky fall … It for sure shows that the system can operate without throwing people in jail,” Brouwer said.

He added that detainees face harsh pandemic conditions in provincial jails – including extended lockdowns, sometimes with three people in a cell for 23 hours a day.

Refugee lawyer Swathi Sekhar said CBSA officials and the Immigration and Refugee Board members reviewing detentions took the risk of COVID-19 into account when deciding whether someone should be detained earlier in the pandemic but are doing so less now.

“Their position is that COVID is not a factor that should weigh in favor of release,” she said.

“We also see very, very perverse findings … [decision-makers] outright saying that individuals are going to be safer in jail.”

The Immigration and Refugee Board did not immediately respond to a Reuters request for comment.

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Nasdaq futures rise as market attempts comeback from April sell-off, Meta shares soar

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Stock futures rose in overnight trading as the market shook off the April sell-off and investors reacted positively to earnings from Meta Platforms.

Futures on the Dow Jones Industrial Average added 70 points or 0.2%. S&P 500 futures gained 0.7% and Nasdaq 100 futures jumped 1.2%.

The moves came as shares of Meta surged more than 18% after hours following a beat on earnings but a miss on revenue, a sign that investors may see signs of relief in the beaten-up tech sector. Shares were down 48% on the year heading into the results.

Meanwhile, shares of Qualcomm gained 5.6% in extended trading on the back of strong earnings while PayPal rose 5% despite issuing weak guidance for the second quarter.

“I think a lot of people want to believe that earnings are going to pull us out of this, but earnings are not what got us into this,” SoFi’s Liz Young told CNBC’s “Closing Bell: Overtime” on Wednesday. “… But the reality is there are so many macro headwinds still in front of us in the next 60 days that the market is just hard to impress.”

The after-hour activity followed a volatile regular trading session that saw the Nasdaq Composite stoop to its lowest level in 2022, as stocks looked to bounce back from a tech-led April sell-off. The index is down more than 12% since the start of April.

In Wednesday’s regular trading, the tech-heavy Nasdaq ended at 12,488.93, after rising to 1.7% at session highs. The Dow Jones Industrial Average rose 61.75 points, or 0.2%, to 33,301.93 propped up by gains from Visa and Microsoft, while the S&P 500 added 0.2% to 4,183.96.

Investors await big tech earnings on Thursday from Apple, Amazon and Twitter, along with results from Robinhood. Jobless claims are also due out Thursday.

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