The Tell: ARK’s Cathie Wood: U.S. already is in a recession, may exit in 2023

by | Aug 9, 2022 | Stock Market

As other investors worry the U.S. could face a recession next year, ARK Investment Management founder Cathie Wood thinks one already has hit — and it could be over next year. While many economists and strategists have been “resisting the notion that we are in a recession,” and anticipate that the U.S. may enter one next year, “we actually think we’ll be coming out of it in 2023,” said Wood, ARK’s chief executive officer and chief investment officer, during the firm’s monthly webcast Tuesday.

“We think we’re in a pretty significant inventory recession, but we don’t think it will be anything like the systemic recession and financial crisis” in 2008 – 2009, she said. It’ll be more of a “garden variety.” From the mid-1940s to 2007, the average U.S. recession lasted 10 months, according to a 2008 study by the Federal Reserve Bank of San Francisco, with the shortest in that stretch lasting only six months. Wood said that innovation is “recession resistant,” pointing to the recent shift back towards growth stocks as a sign of this trend, as their growth rates are “superior” to the rest of the market, “which tends to be more influenced by the cycle.” Growth stocks trounced value equities last month, with the Russell 1000 Growth

Article Attribution | Read More at Article Source

Share This