Cathie Wood Unravels Fed's Domino Effect Breaking China And Triggering Global Deflationary Bust: 'Rapid Growth Can Cover Many Economic Sins'
Portfolio Pulse from Shanthi Rexaline
Ark Investment Management CEO Cathie Wood has warned that the Federal Reserve's continued rate tightening could lead to a global deflationary bust, with China being the first to be hit. Wood noted that China is exporting deflation and that the country's economic issues are now surfacing due to excessive debt and associated leverage. Recent data from China shows a combination of slow growth and a deflationary trend. The iShares MSCI China ETF (NASDAQ:MCHI) ended Monday’s session down 0.72% at $45.51.
August 15, 2023 | 6:52 am
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
The iShares MSCI China ETF (NASDAQ:MCHI) could be negatively impacted by the potential global deflationary bust and China's economic issues.
The ETF is directly exposed to the Chinese market, which is expected to be the first to be hit by the potential global deflationary bust. Additionally, China's economic issues, such as excessive debt and associated leverage, could further negatively impact the ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100