Why Cathie Wood Says Forget Inflation and Growth Worries, as the Chip Rally Stalls

Dow Jones09-22 22:05

All signs point to further tightening by the Federal Reserve-but that's not a problem worth worrying about, according to tech bull Cathie Wood.

Rapid technological advancements are about to kick-start a period of economic growth that will make higher borrowing costs irrelevant, the ARK Invest CEO said on Monday, in a weekly newsletter.

Investors weren't heeding her advice. Chip and memory stocks were struggling for direction on Tuesday, having helped power the Nasdaq Composite to a record high the previous session.

Advanced Micro Devices edged up 0.2%, after the chip maker topped a $1 trillion valuation for the first time ever on Monday. Wood's flagship ARK Innovation ETF has a $280 million position in AMD.

"The current Technology Revolution is impacting the global economy in many ways like the Industrial Revolution did more than 125 years ago," Wood said.

The tech boom is likely to drag down inflation and cause growth to "accelerate significantly above the 2-3% range in place globally since the Industrial Revolution," she added.

Wood will lay out her thoughts in more detail in a letter this week.

It isn't a surprise to see Wood shrug off the market's rate-hike fears. The ARK Invest founder is well-known as a permanent tech bull who has made big bets on AI, cryptos, and robo-taxis.

 

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