By Suzanne McGee
(Reuters) – U.S. technology investor Cathie Wood is calling on Donald Trump’s new administration to boost economic growth and political certainty by backdating promised corporate and personal tax cuts to Jan. 1, 2025, she said. she told Reuters.
Lagging in recent years, Wood’s flagship exchange-traded fund, ARK Innovation, has surged 17% since Trump’s victory, which is expected to lead to policy changes that will benefit the fund’s holdings.
Two of its stocks, electric car maker Tesla and crypto exchange Coinbase, are already up 54% and 7% respectively since November 6, while the S&P500 is up about 1.7% over the of this period.
ARKK’s other top holdings include Robinhood and Block, both of which could benefit from more crypto- and AI-friendly policies.
Wood has publicly supported Trump’s economic platform, arguing that his plan to strike deals, promote innovation in cryptography and artificial intelligence, and cut government red tape and costs would make it easier the life of American businesses.
Tax policy was also a focus of the election campaign, with Trump pledging to cut rates paid by companies that manufacture goods in the United States and extend individual tax cuts passed by Congress in 2017 and which will expire next year.
This is a key area where Wood said she wants more clarity.
“I see them saying, okay, we’re going to cut taxes, but we’ll make them retroactive to January 1, 2025. That would be very helpful, I think, in terms of certainty for the markets,” Wood said in an interview.
“If they don’t, maybe businesses and individuals will hold back. … I try to communicate that pretty regularly to anyone who will listen.”
While Wood said she generally does not support tariffs, which act as an increase in taxes on goods, Trump’s threat to increase them on major trading partners appears to be a negotiating strategy.
TAX REFORM
Analysts expect the new Republican-controlled Congress to pursue tax reform next year, but Trump will launch other key policies with executive orders at his Jan. 20 inauguration. He also announced the appointment of new regulators who can begin implementing his pro-innovation agenda.
Campaign finance records indicate Wood did not financially support Trump in the 2024 election cycle.
She told Reuters she had only met Trump once, earlier this year at his Florida home, but was in contact with Tesla boss and billionaire Trump supporter Elon Musk, and Wyoming Republican Sen. Cynthia Lummis, a crypto enthusiast, both of whom help shape Trump’s policies. .
