Cathie Wood Urges Retroactive Tax Cuts under Trump

Cathie Wood, a prominent tech investor, is advocating for the incoming Trump administration to implement retroactive tax cuts effective from January 1, 2025, to enhance economic growth and provide market certainty. Her ARK Innovation ETF has surged by 17% post-Trump's electoral win, buoyed by gains in stocks like Tesla and Coinbase, which have risen 54% and 7% respectively since November 6. Wood praises Trump's economic policies focused on innovation, deregulation, and reduced government expenditures, asserting that without retroactive tax cuts, businesses may hesitate to invest. She perceives Trump's tariff threats as a strategic negotiation tool despite her usual opposition to tariffs. Analysts anticipate tax reform will be a significant focus for the new Republican-controlled Congress, with Trump expected to initiate key policies through executive orders soon after his inauguration. Wood remains optimistic about the potential of AI and cryptocurrency investments yet acknowledges the inherent volatility in such high-risk strategies.