Cathie Wood Declares The US Is Already In Recession, Contrary To What Economists Say
Ark Invest’s founder and CEO Cathie Wood is back making headlines with a new declaration: the US is already in recession. And she believes it has been since the first quarter of the year.
Wood, who’s more recently known for making wrong calls, on Tuesday appeared on CNBC’s Squawk Box and warned of excess inventories: “We think a big problem out there is inventories… the increase of which I’ve never seen this large in my career. I’ve been around for 45 years.”
The high-profile innovation-focused investor doubled down on her earlier claims on inflation and acknowledged that it was a “bigger problem” than she initially believed. “We were wrong on one thing and that was inflation being as sustained as it has been,” Wood said, pointing out that they “couldn’t have seen” the supply constraints resulting from Russia’s unprovoked invasion of Ukraine.
The consumer price index, which was 8.6% in May, saw the steepest year-on-year hike in over four decades.
Meanwhile, economists seem to agree that the US still has enough to avoid a recession this year.
Analysts at S&P Global Ratings said in a research note released on Monday warned that “what’s around the bend next year is the bigger worry.” S&P economists put the 2023 odds of a recession at 40%, while Morgan Stanley called 35%.
Others are a little more optimistic: LPL Financial analysts said the odds are likely closer to 33% and can be lower, with healthy corporate earnings.
Information for this briefing was found via Twitter, CNBC, Forbes and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
