Deflation On The Horizon? Cathie Wood Points At Falling Commodity Prices To Hint At Slowing Economy
Portfolio Pulse from Benzinga Neuro
Cathie Wood, CEO of ARK Invest, warns of a potential deflationary cycle due to falling commodity prices and a flattening yield curve. She suggests that the economy is slipping into a recession and that significant easing by the Federal Reserve is needed. Wood's ARK Innovation ETF (NYSE: ARKK) is shifting its strategy to favor small-cap stocks over large-cap tech companies.
July 18, 2024 | 8:26 am
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Cathie Wood's ARK Innovation ETF (ARKK) is shifting its strategy to favor small-cap stocks over large-cap tech companies due to concerns about a deflationary cycle and a restrictive monetary policy by the Federal Reserve.
The shift in strategy for ARKK reflects Cathie Wood's concerns about a deflationary cycle and the Federal Reserve's restrictive monetary policy. This strategic change could impact the ETF's performance in the short term, but the overall market reaction may be neutral as investors digest the news.
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IMPORTANCE 80
RELEVANCE 100