EddieJayonCrypto
1 Jul 25
Cathie Wood, CEO of Ark Invest, states the US economy is in a nuanced recession, with resilience in the market despite tariffs, Federal Reserve and presidential conflicts, and volatility. She expects interest rates to decrease and notes housing data lags other indicators. Wood highlights the recent ...
The CEO of Ark Invest, Cathie Wood, states that the US economy is currently in a recession, but with important nuances. She explains that despite widespread concerns about tariffs, conflicts between the Federal Reserve and the President, and market volatility, the market has shown resilience. Wood suggests this resilience indicates interest rates are likely to decrease and highlights the often-overlooked housing data, which typically lags behind other indicators.
Wood emphasizes that the recent bull market’s concentration in a few stocks—seen as unhealthy—is starting to broaden out. She credits deregulation efforts as a key factor in revitalizing the economy by unleashing what she calls “animal spirits.” Addressing opposing views that the economy is stable, she points to struggles in housing and manufacturing sectors as evidence of ongoing weakness.
Wood describes the current phase as a “rolling recession,” marked by declines in housing and manufacturing due to high interest rates. However, she is optimistic that as interest rates fall, deregulation progresses, and clarity around tax policies emerges—such as the potential for immediate expensing of capital goods—the economy will shift smoothly into a recovery phase.