Cathie Wood FIGHTS BACK (Michael Burry's New Big Short).

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wait

wait a second here

kathy wood hits back at michael murray

so we heard that michael bury is

shorting kathy woods ark invest which is

not a surprise we have seen the short

interest percentage skyrocket at uh

throughout this year of kathy woods arc

funds specifically well arc

k arc innovation in fact if we go to the

let's go to the year-to-date chart

uh on arc k here

we could see

just above my head here this chart

showing rk basically going from next to

no short

to uh as high as 13.86 percent short at

one point presently sitting at 12.96

percent short on rk it's it's really if

you want a short innovation you want to

short high p e stocks kathy's a great

one to shore

if that's what you wanted to do so let's

see how kathy responded

kathy wood laid out her case for why her

firm has for months been pairing

holdings tied to chinese tech holdings

okay well

that's

i want to hear the response to the

michael murray part not the i was right

i'm selling chinese stocks

the superstar fund manager also rebutted

investor michael berry there we go after

he gets together bet against here we go

i think that china u.s saber rattling

which has intensified under this

administration a surprise to me is

bringing more activity back home okay

yes this is true

we thought

conventional wisdom was that chinese us

relations would actually be better under

biden than under trump

and they've actually been worse

which it was a big surprise so yeah that

is true that was a surprise uh all right

then uh the supply chain reorganization

is going to be positive for the u.s and

it'll be somewhat negative for china in

a tweet tuesday she also hit back at

buri the big short

uh or who got famous through the the big

short in 2000 you know in the 2008

financial crisis but anyway

okay here let's see owns a bearish put

contract against

235 000 shares of arc innovation

wood said in her tweet that she doesn't

think bury understands the fundamentals

that are creating explosive growth and

investment opportunities in the

innovation

space did she really say that she said

she doesn't she doesn't think he

understands that i mean i personally

think he understands it i think he's

trying to go in and out you know he's

trying to trade this stuff uh he's back

on twitter by the way i guess is he no i

don't know if that's actually him

because he keeps

no because usually i don't know he keeps

deleting his twitter let's go to kathy

i'm gonna assume that's not him

uh okay so kathy

yes she did look at this

uh

hold on this is the second row of tweets

here oh we've we've got a we've got a

lot of tweets here let's break this down

here look at this

most bears seem to believe that

inflation will continue to accelerate

shortening investment time horizons and

destroying valuations despite what we

believe has been a supply chain related

short-term burst in inflation both

equities and bonds have appreciated

since march

uh and okay

unlike the tech and telecom bubble this

equity bull market has broadened beyond

the innovation strategies that boomed

last year to value and other stocks that

trailed okay she's made this argument

before basically she's saying look when

when

you start seeing the rally go beyond

innovation to other stocks like target

or simon property group or cheesecake

factory or whatever right then that's a

sign that when those bubble up then then

soon you'll be able to have this cycle

back towards tech and innovation

bubbling up again likely more than the

others had but that these things go in

waves this makes sense the bull market

has also strengthened setting the stage

for what we believe will be another leg

up in innovation strategies which

obviously right now are kind of in the

pooper the last

six months have been very difficult for

innovation strategies since february

you know arc has had pain there's been a

lot of pain since mid-february the

equity market is likely to reward

disruptive innovation strategies once

again

when headline inflation breaks or fears

of recession increase well that's

interesting

these are two things that she's saying

she thinks that uh we're going to see

innovation do well again once we see

that inflection point downwards in

inflation which i've regularly talked

about september to october readings

which would be october to november for

that downward inflection but delta could

really delay this

uh or fears of recession so in other

words she's saying maybe innovation

stocks could be a flight to safety i

actually have to disagree with her

because i think folks fear the potential

of higher inflation and a recession

which if you have a fear of higher

inflation and a recession i don't know

that innovation is going to be your

destination

uh and that's certainly not what the

market's pricing in right now so i kind

of disagree with the second part of the

statement here anyway if the bond market

is correct one or both will be obvious

during the next three to six months what

she's saying here is look at the 10-year

yield the 10-year yields at 1.24

the bond market is obviously pricing in

an inflection point to the downside in

inflation and the bond market could be

giving you a heads-up

of this of this uh inflection point

coming

since mid-may a number of commodity

prices have been breaking down okay so

now she's referencing this this sort of

collapse in commodities which

commodities had been seen as this this

uh inflection point in inflation to the

upside

and that uh now we're actually seeing

commodity prices fall and that's clearly

an indication that inflation is on its

way down this is uh this is you know

something uh that kathy would believe

now uh this is also true uh we talked

about this about two weeks ago

that uh car sales are flattening or

declining the bloomberg she clearly

reads bloomberg regularly because

bloomberg was talking about this like

two weeks ago uh so this is true

uh the deflation in commodity prices is

cyclical but is adding to cyclical

secular forces that cause uh caused by

technologically dis uh enable disorder

okay basically what she's saying is look

commodity prices go up and down but

because they're going down now you're

seeing them go down potentially

with uh the same time as you have

deflationary forces from technology and

innovation bringing prices down uh this

is her same this is her arguments about

deflation the different forms of

deflation good deflation which is

innovation or bad deflation which is

basically like hey you guys are gonna go

bankrupt because your products are old

and you suck and now you have to lower

prices because of that uh and now you're

going to go out of business right these

these are the same arguments we've heard

her make many many many a time which is

fine

these are fine so far i agree with

everything she's saying

uh and a lot of this has been written on

the wall and written on bloomberg for a

few weeks now

uh with the exception of this this

comment here that she believes

innovation will do well if recession

fears increase i don't believe in this

one i do believe in the headline

inflation breaking because i i don't see

if

innovation right now is a flight to

safety asset i just don't see the market

believing that so if we are correct gdp

and revenue growth will diminish until

the opportunities in nascent

technologies begin to move macro needles

okay now what she's saying is

we're going to see a softening in in

earnings or revenues at companies

until the little tiny little baby

companies like nano dimensions start

actually making some real money some big

boy money

got it

i don't know about that i think it's

gonna be a while for a nano dimension

moving the needle in our view the seats

for innovation explosion that arc invest

is dedicated to researching were planted

20 years during the 20 years ending with

the tech and telecom bus yeah so she's

made this argument before that basically

uh

we're not in another a dot-com bubble

nah that that now we actually have the

correct technology for a real bubble uh

i'm sorry not for a real bubble for real

explosive growth uh that that is

real versus bubble which is generally

associated with fake anyway to his

credit michael barry made a great call

based on fundamentals and recognized the

collab calamity brewing in the housing

mortgage market i do not believe that he

understands the fundamentals that are

creating explosive growth and investment

opportunities in the innovation space

no that's a that's a kathy slam here

she's basically saying like

the only reason people care about

michael bury is because he was right one

time

during the great recession and it was a

big right he did well it was great the

fundamentals were screaming

red flags everywhere

but

by her saying this

she is flipping the script basically

saying

he's not understanding the fundamentals

today and therefore he's wrong she's

saying look he was right then about

fundamentals but he's wrong now

kind of interesting

kind of interesting this is this is a

good kathy slam here kathy's going

defensive i love it oh this is like it's

like uh

financial people fighting they exchange

tweets

that's great

uh

yeah okay that that was that was the

whole tweet uh trend uh thread there

rather so

very interesting

nice kathy wood sort of slap back here

at uh michael bury again i uh and we've

covered a lot of these things before so

not a lot of surprises uh in in her

tweet here

but uh

we might give this a brief listen here

it's only a minute long uh not a lot of

surprises of what she's saying we've

covered a lot of this before it is very

interesting though that she's

essentially bluntly saying michael berry

was right about the fundamentals in the

past but he's dead wrong right now she

is digging her heels in very interesting

i do disagree with her though that

people are going to flee to innovation

stocks in a recessionary uh as

recessionary fears increase i i think

that's that's not correct but uh

who knows we can have a difference of

opinion

um okay let's see here china's crackdown

stunts innovation okay this so this

video clip is really just going to talk

about the chinese crackdown stunning

innovation okay we know this we already

kind of got our bottom line from tweets

here so

very interesting

that's kathy wood's slap bag for you now

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