Source (for her take on recession): https://www.yahoo.com/video/recession-long-time-bull-cathie-110000158.html
Real GDP in the U.S. declined at an annual rate of 0.9% in Q2 – and that’s after a 1.6% drop in Q1.
While politicians refuse to use the “R” word, plenty of experts – including Ark Invest’s Cathie Wood – are calling for a recession.
In fact, she made the call even before the official data came out.
“We think we are in a recession,” Wood said in a recent CNBC interview. “We think a big problem out there is inventories — the increase of which I’ve never seen this large in my career. I’ve been around for 45 years.”
Based on how markets are doing, sentiment is certainly bearish. The S&P 500 is down 14% year to date. Wood’s flagship fund Ark Innovation ETF (ARKK) tumbled by 49% during the same period.
But investors are not giving up. CNBC noted Fact Set data showing that ARKK saw over $180 million in inflows in June.
“I think the inflows are happening because our clients have been diversifying away from broad-based benchmarks like the Nasdaq 100,” says Wood. “We are dedicated completely to disruptive innovation. Innovation solves problems.”
Source (for her take on Fed rate cuts):
Bloomberg article to follow.
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