"Money Tree Sister" Cathie Wood: "Trump's Policies Will Revive U.S. IPO Market"

Expectations Rise for an IPO Revival Under a Second Trump Administration
Turning Fear Into Optimism: Hopes for IPO and Risk Asset Market Recovery

Cathie Wood, CEO of Ark Investment Management, expects the stock market and initial public offering (IPO) market to revive during the "second term of the Trump administration." The photo shows CEO Cathie Wood during an interview with CNBC in 2023. (Reuters·Yonhap News) Photo by Reuters

Cathie Wood, CEO of the U.S. asset management firm Ark Investment Management, stated that the stock market and initial public offering (IPO) market are expected to revive during the "second term of the Trump administration."

In an interview with Bloomberg on January 22 (local time), CEO Cathie Wood said, "Regulatory changes will greatly help revive the public markets." She added, "I understand why companies want to remain private (before listing)," and noted, "The regulatory challenges faced when entering the public market create a lot of friction."

According to Bloomberg, the total amount raised through IPOs in the United States in 2024 was approximately $43 billion. This is a significant decrease compared to the hundreds of billions of dollars raised annually before and after the COVID-19 pandemic, which is why there is a consensus that the IPO market has not yet returned to its previous peak.

She further commented, "What a new administration does is turn fear into optimism," expressing her expectations that "the importance of regulatory easing in stimulating investor sentiment is being underestimated."

President Trump is expected to introduce new policies such as tax cuts and stricter immigration enforcement, in addition to tariff policies favorable to the United States.

Known as "Money Tree Sister," Cathie Wood drew market attention by achieving record returns through technology-focused investments in companies like Tesla during the COVID-19 pandemic. While her flagship fund, the Ark Innovation ETF, posted a return of only 8% last year, it has surged nearly 10% so far this year, significantly outperforming the benchmark (BM) index return of 3.7%.