By Suzanne McGee
(Reuters) – U.S. technology investor Cathie Wood is calling on Donald Trump’s new administration to boost economic growth and policy certainty by rolling back promised corporate and personal tax cuts to Jan. 1, 2025, she told Reuters.
Wood’s flagship exchange-traded fund ARK Innovation has lagged in recent years and is up 17% since Trump’s victory, which is expected to bring policy changes that will benefit the fund’s investments .
Two of its stocks, electric car maker Tesla (TSLA) and cryptocurrency exchange Coinbase (COIN), have already risen 54% and 7% respectively since November 6, while the S&P500 (^GSPC) is up about 1.7% in that time has increased.
ARKK’s other top holdings include Robinhood (HOOD) and Block, both of which could also benefit from friendlier crypto and AI policies.
Wood has publicly supported Trump’s economic platform, arguing that his plan to broker deals, promote innovation in crypto and artificial intelligence, and cut red tape and government costs will make life easier for corporate America to make.
Tax policy was also at the center of the election race, with Trump promising to cut tariffs paid by companies that make goods in the United States and extend individual tax cuts passed by Congress in 2017 that are set to expire next year.
That’s a key area where Wood said she is pushing for more clarity.
“I see them saying: OK, we’re going to cut taxes, but we’re going to make them retroactive to January 1, 2025. That would, I think, be very helpful in terms of providing certainty to the markets,” Wood said in an interview.
“If they don’t, you may be holding companies and individuals back. … I try to convey that quite regularly to anyone who will listen.”
While Wood said she is generally not in favor of tariffs, which act as a tax increase on goods, Trump’s threat to raise them on major trading partners appears to be a negotiating strategy.
Analysts expect the new Republican-controlled Congress to pass tax reforms next year, but Trump will initiate other major policies with executive orders when he is inaugurated on January 20. He has also announced new regulators who can implement his pro-innovation agenda.
Campaign finance records show that Wood did not financially support Trump during the 2024 election cycle.
She told Reuters that she has met Trump only once, earlier this year at his Florida home, but that she is in touch with Tesla boss and billionaire Trump backer Elon Musk and crypto enthusiast Republican Senator Cynthia Lummis of Wyoming, both of whom help shape Trump’s policies. .
