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Cathie Wood, CEO & CIO of ARK Invest was a wall street darling not too long ago is now criticized as a one trick pony with her fund falling as much as 60% this year from its peak.
She is however sticking to her guns. In her recent tweet she compare the current set up similar to the roaring twenties where an innovation bloom exploded with production improved tremendously because of rapid advancement in technologies after the world had just recovered from World War I and Spanish flu.
Inflation was rampaging throughout as the world heals themselves from the end of the World War. The Federal Reserve back then make a decision to combat inflation by raising interest rates significantly which produced incredible results as inflation falls below zerol which entails the transition into the roaring twenties where stock market shot up insanely on period of wild speculation until the crash of 1929.
Although she warned that if the current Federal Reserve does not pivot soon, the current setup will be more like of the 1929 where the world went through a great depression as high interest rates eventually crashed the market and pulled down the world's economy. She argued the Federal Reserve are ignoring deflationary signals currently happening and would be a mistake to continue to raise rates.
The Federal Reserve on the other hand has always maintain their stance that their job is not done and hinted at continuous rate hikes even as the most recent CPI report came in way below expectations to the surprise of many.
Do you agree with Cathie Wood that the Federal Reserve should reverse their stance or do you think the Federal Reserve should continue to try and keep inflation under control without hurting the economy and with all in due, will they succeed?
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