Cathie Wood, a well-known U.S. technology investor, is calling for clear tax policies from Donald Trump‘s incoming administration.
What Happened: Wood proposes that tax cuts be retroactively applied from Jan. 1, to boost economic growth and provide policy certainty, Reuters reported on Friday.
“I see them saying, okay, we’re going to cut taxes but we will make them retroactive to Jan. 1, 2025. That would be very helpful, I think, in terms of providing certainty for the markets,” Wood said.
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“If they don’t, you’re going to get companies and individuals perhaps holding back. … I’m trying to communicate that pretty regularly to anyone who will listen.”
Wood’s primary fund, ARK Innovation ETF (NYSE:ARKK), has experienced a 17% increase following Trump’s electoral win, which is expected to bring about advantageous policy shifts. Stocks such as Tesla Inc. (NASDAQ:TSLA) and Coinbase Global Inc. (NASDAQ:COIN), which are in Wood’s flagship fund, have already seen notable gains since Nov. 6.
Wood has voiced her support for Trump’s economic strategies, which include fostering innovation in cryptocurrency and artificial intelligence, streamlining regulations, and reducing government expenses. She stresses the importance of retroactive tax cuts to ensure market stability, cautioning that without them, businesses and individuals may be reluctant to invest.
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While Wood typically opposes tariffs, she perceives Trump’s tariff threats as a strategic negotiation tool. Analysts predict that tax reform will be a focal point for the new Republican-majority Congress, with Trump expected to implement key policies through executive orders after his January 20 inauguration.
Wood, who did not financially back Trump in the 2024 election, maintains communication with Elon Musk and Sen. Cynthia Lummis (R – Wyo.) both of whom are influential in shaping Trump’s policies. Despite some market fluctuations, Wood remains hopeful about the ongoing influence of the ‘Trump bump’ on innovation-driven industries.
Why It Matters: Wood has previously expressed optimism about the stock market’s potential under Trump’s leadership. In early December, she shared her belief that the market was beginning to anticipate a shift, noting a broadening out from a concentration on a few stocks.
