Nevertheless, Bitcoin is as a “highly currency” investment, hence, a very risky investment.
Wood, however, said that Bitcoin could stabilize to eventually become a part of the recommended portfolio for investors making 60% in stocks and 40% in fixed income.
“If you think about bonds from this level, this idea of a 60-40 balanced portfolio is a bit problematic,” Wood said. “We’ve been through a 40-year bull market in bonds. We would not be surprised to see this new asset class become a part of those percentages. Maybe 60 equity, 20, 20,” Wood said.
Ark fund has rumpled since the start of 2021. The flagship’s largest holdings were hit by the rotation into value, but Wood argued that she is still confident in her strategy regardless of the recent losses.
