Written by Susan McGee
(Reuters) – Cathie Wood, an American technology investor, told Reuters that she is calling on the incoming Donald Trump administration to promote economic growth and political certainty by postponing the promised corporate and individual tax cuts to January 1, 2025.
After lagging in recent years, Wood’s flagship exchange-traded fund ARK Innovation is up 17% since Trump’s win, which is expected to trigger policy changes that will benefit the fund’s holdings.
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&P 500 (^GSPC) has risen about 1.7% in that time.
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 unleash transactions, encourage innovation in cryptocurrencies and artificial intelligence, and cut red tape and government costs will make life easier for American businesses.
Tax policy has also been central to the election race, with Trump vowing to lower the rate 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.
This is 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.’ I think that would be very helpful in terms of providing certainty to the markets,” Wood said. interview.
“If they don’t, maybe companies and individuals will have to back down. … I try to communicate that on a regular basis to anyone who will listen.”
While Wood said she does not generally support 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 pursue tax reform next year, but Trump will initiate other major policies with executive orders when he is inaugurated on January 20. He also announced new regulators that could begin implementing his pro-innovation agenda.
Campaign finance records indicate Wood did not financially support Trump in the 2024 election cycle.
She told Reuters that she met Trump only once, earlier this year at his home in Florida, but that she is in contact with Tesla CEO and billionaire Trump supporter Elon Musk and Republican Senator from Wyoming Cynthia Lummis, both of whom are helping shape Trump’s policies. .
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