Ark Invest CEO and CIO Cathie Wood says she expects unemployment to increase in the next six to nine months and CPI could end up negative in 2024. She speaks with Katie Greifeld on “Bloomberg Markets: The Close.”
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Cathie Wood, the founder and CEO of ARK Invest, has been making waves in the investment world with her bold predictions and unique perspectives on the market. In a recent interview, Wood expressed her concerns about the Federal Reserve’s monetary policy and its potential impact on the economy.
Wood believes that the Fed has overdone it when it comes to its efforts to combat inflation. She argues that the central bank’s aggressive stance on raising interest rates and tapering its bond-buying program is not justified by the current economic conditions. According to Wood, the Fed’s actions could lead to more deflation in the future, rather than the inflation that it is trying to prevent.
Wood’s stance on the Fed’s policy is based on her analysis of the global macroeconomic landscape. She believes that the current disinflationary environment, driven by technological innovation and demographic trends, is likely to persist for the foreseeable future. In addition, Wood is also wary of the potential negative impact of the Fed’s actions on asset prices and economic growth.
Despite her concerns, Wood remains optimistic about the outlook for certain sectors of the economy. She sees opportunities in innovative and disruptive technologies, such as artificial intelligence, robotics, and genomics, which have the potential to drive economic growth and create value for investors. Wood’s investment philosophy is centered around identifying and investing in companies that are at the forefront of these technological advancements.
As an active manager of several exchange-traded funds (ETFs) focused on disruptive innovation, Wood has been able to deliver impressive returns for her investors. Her flagship ARK Innovation ETF has outperformed the broader market over the past several years, thanks to its exposure to high-growth companies in innovative industries.
Wood’s contrarian views on the economy and the market have earned her a devoted following among investors who share her belief in the potential of disruptive technologies. While some may dismiss her warnings about the Fed’s policy as overly pessimistic, her track record and deep understanding of the forces shaping the economy have earned her credibility in the investment community.
In conclusion, Cathie Wood’s latest comments on the Federal Reserve’s monetary policy highlight her unique perspective on the economy and the market. While her views may diverge from the consensus, she has a history of being ahead of the curve and identifying long-term trends that others may overlook. As the economy continues to navigate through a period of uncertainty, Wood will likely remain a prominent voice in the conversation about the future of innovation and investment.
Sorry billionaires no more free money
I am still experiencing my groceries bill going up
Ahead! Can't sell a thing!
if a 1/3 of the sp500 companies have negative revenue growth than what is going to happen when prices drop and they make even less money???
Once you got it up , Keep it up.
Cathie dont miss
Cathie Wood not looking well!
Why is this woman still relivent?
She invests in companies with no earnings and heavy debt loads. Of course she keeps pushing this deflation narrative. She's talking her book.
As if the Ark loser would know ?!
One thing that will anchor inflation expectations is when people realize, but more importantly see that Fed can and will lower inflation. Via higher rates. Even if so many other variables are in play. That ultimately Fed is in control. Without this… there's no anchor. And views on inflation could just drift up. Doubts about monetary policies effectiveness is a dangerous fire to light. That could burn and rage for a decade.
All these variables ultimately flows through to individual choices made by each person. We have a better understanding of variables. But our understanding of ourselves is still limited. A mysterious box where variables are inserted, and out comes inflation numbers.
No one understands inflation truly. I certainly don't. There's still many who claim like Kathy that says inflation is transitory. That fed could have just sat and did nothing. Along side economists who calls for higher unemployment to lower inflation. high unemployment does lower inflation. Phillips curve. Causation or correlation though?
People have mentioned falling money supply and QT as reasons that inflation should fall.
But then we just had 4.5% growth with rising monthly inflation readings over the summer.
There's so many variables in the equation that ultimately spits out the inflation number… energy prices, sentiment, fiscal policies, supply side dynamics.
You're literally asking Fed to quantify so many variables.
Before it was easy. Just raise rates until things break, people lose jobs, sentiment collapses, money supply falls etc etc. Roaring 1920's was ultimately met with great depression as Fed then brought down inflation the only way they knew how. But everytime can be different. Just not exactly sure how.
Fed did too much? Is that why previous 2 months of inflation was ticking up?
I’m thinking of buying a new garden hose at Home Depot. This should increase same store sales by $49.99.
wishful thinking?
If you make it hard enough for poor people, eventually they will be hungry enough to work for bread and water.
Deflation? Nah, we will never see our wealth and purchasing power returned. Any efforts by Republicans in Congress to rein in spending and decrease the budget deficit will be met with cries of racism.
But we need deflation!