Is a Recession Looming? Cathie Wood's Surprising Take! 😲💰

In the grand theater of economic discourse, where the players often wear masks of indifference, ARK Invest’s esteemed leader, Cathie Wood, has taken the stage with a rather alarming proclamation. She posits that the White House, in its infinite wisdom, is woefully underestimating the specter of recession that looms over the American economy, a specter birthed from the tariff policies of none other than President Donald Trump. Ah, the irony! One might say it is a classic case of the emperor’s new clothes, where the naked truth is shunned in favor of comforting illusions.

During her virtual appearance at the Digital Asset Summit in New York on this fateful day of March 18, Wood noted with a hint of sarcasm that US Treasury Secretary Scott Bessent appears blissfully unconcerned about the impending doom. “We are worried about a recession,” she declared, as if to say, “But who’s counting?” She further elaborated, “We think the velocity of money is slowing down dramatically.” Oh, the velocity of money! It seems to be taking a leisurely stroll while the economy races towards uncertainty.

Indeed, a slowdown in the velocity of money suggests that capital is changing hands with the frequency of a tortoise in a marathon. This, dear reader, is typically associated with a recession, as consumers and businesses clutch their wallets tighter than a miser at a charity gala.

“I think what’s happening, though, is that if we do have a recession, declining GDP, that this is going to give the president and the Fed many more degrees of freedom to do what they want in terms of tax cuts and monetary policy,” Wood mused. A silver lining, perhaps? Or merely a mirage in the desert of fiscal policy?

Investors, those ever-hopeful creatures, believe that the first domino may soon topple when the Fed finally decides to end its quantitative tightening program. Bettors on Polymarket are convinced it’s a done deal before May. One can only hope they’re not betting their life savings on it!

Meanwhile, expectations for multiple rate cuts by the Fed in the latter half of the year are growing, as indicated by the CME Group’s Fed Fund futures prices. It seems the financial world is holding its breath, waiting for the next act in this economic drama.

Focus remains long term

ARK and Cathie Wood, those intrepid explorers of the cryptocurrency frontier, have been at it for years. Their spot Bitcoin (BTC) exchange-traded fund (ETF) was approved on January 11, 2024, and now boasts a staggering $3.9 billion in net assets, according to Yahoo Finance. Who knew digital coins could be so lucrative? 💸

In a partnership with Eaglebrook Advisors, ARK also offers crypto portfolio solutions to wealth managers. Wood, with a twinkle in her eye, told the New York Digital Asset Summit that “long-term innovation wins as we go through these trials and tribulations.” Trials and tribulations, indeed! It sounds like the title of a melodrama.

When queried about the long-term viability of crypto assets, Wood confidently asserted that this strategy is the cornerstone of ARK’s investment approach. “We’ve built out positions in more than just the big three,” she remarked, referring to Bitcoin, Ether (ETH), and Solana (SOL). A veritable buffet of digital assets!

This long-term arc is buoyed by favorable regulations, which have dramatically improved the investment landscape. Pro-crypto policy changes are “giving institutions the green light,” Wood noted, reminiscing about a time when her studies were dismissed as mere folly. “If you look at our studies as long ago as 2016, we wrote a paper called ‘Bitcoin: Ringing the Bell for a New Asset Class,’ and yet many institutions just dismissed it out of hand.” Oh, how the tables have turned!

Now, institutions are finally taking notice, realizing they “have a fiduciary responsibility to expose [their] clients to a new asset class

2025-03-18 20:17

Is a Recession Looming? Cathie Wood’s Surprising Take! 😲💰

Focus remains long term

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