Cathie Wood Downplays Impact Of Yen 'Carry Trade' On Markets: Here's Why Ark Invest Founder Thinks Fed Rate Should Be At 1% Now
Portfolio Pulse from Shanthi Rexaline
Cathie Wood, founder of Ark Invest, commented on the recent spike in the CBOE Volatility Index (VIX) and its implications. She compared the current market conditions to those in 1987 and 2008, attributing the spike to the unwinding of yen carry trades. Wood mentioned that the impact could be limited like in 1987, but broad-based price deflation could be more relevant now. She also suggested that the Fed funds rate should be closer to 1% if the 10-year Treasury note yield was around 2%. The SPDR S&P 500 ETF Trust (SPY) traded up 1.69%.
August 06, 2024 | 4:10 pm
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NEGATIVE IMPACT
Apple, Inc. is part of the 'Magnificent Six' stocks affected by the unwinding of yen carry trades.
The unwinding of yen carry trades could lead to selling pressure on AAPL, as it is one of the 'Magnificent Six' stocks mentioned by Cathie Wood.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Amazon.com Inc. is part of the 'Magnificent Six' stocks affected by the unwinding of yen carry trades.
The unwinding of yen carry trades could lead to selling pressure on AMZN, as it is one of the 'Magnificent Six' stocks mentioned by Cathie Wood.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Alphabet, Inc. is part of the 'Magnificent Six' stocks affected by the unwinding of yen carry trades.
The unwinding of yen carry trades could lead to selling pressure on GOOGL, as it is one of the 'Magnificent Six' stocks mentioned by Cathie Wood.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Meta Platforms, Inc. is part of the 'Magnificent Six' stocks affected by the unwinding of yen carry trades.
The unwinding of yen carry trades could lead to selling pressure on META, as it is one of the 'Magnificent Six' stocks mentioned by Cathie Wood.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Microsoft Corp. is part of the 'Magnificent Six' stocks affected by the unwinding of yen carry trades.
The unwinding of yen carry trades could lead to selling pressure on MSFT, as it is one of the 'Magnificent Six' stocks mentioned by Cathie Wood.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
NVIDIA Corp. is part of the 'Magnificent Six' stocks affected by the unwinding of yen carry trades.
The unwinding of yen carry trades could lead to selling pressure on NVDA, as it is one of the 'Magnificent Six' stocks mentioned by Cathie Wood.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust traded up 1.69%, reflecting a positive market reaction despite the VIX spike.
Despite the VIX spike, SPY traded up 1.69%, indicating a positive market reaction possibly due to buying opportunities in trounced stocks.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90