Cathie Wood: The U.S. has fallen into a "rolling recession," Ark Invest recently went against the trend to buy the dip in cryptocurrency-related assets
ChainCatcher news, Ark Invest CEO Cathie Wood stated that the U.S. has fallen into a "rolling recession" (with different industries experiencing recession in rotation).In an interview with Bloomberg, she said, "We believe we are in a rolling recession, and in fact, we will see some quarters of negative growth, as the velocity of money is collapsing." She predicts that the collapse of money velocity will trigger 1-2 quarters of negative growth in the U.S. economy, which will prepare for tax cuts from the Trump administration and interest rate cuts from the Federal Reserve.Despite her pessimistic outlook on the short-term prospects of the U.S. economy, Wood revealed that Ark Invest has recently been counter-cyclical in buying assets related to cryptocurrencies, such as Tesla, Coinbase, and Robinhood, firmly believing that "technological disruption will lead to healthy deflation."It is worth mentioning that in early March, Wood stated at the Bloomberg Investment Conference in New York that the U.S. economy was at the end of a "three-year rolling recession," after which the U.S. stock market would soar. However, she now seems to have changed this view.
