Cathie Wood Believes U.S. is In a Recession And That The Fed Will Usher In Rate Cuts Next Year

$ARK Innovation ETF (ARKK.US)$ Real GDP in the U.S. declined at an annual rate of 0.9% in Q2 – and that’s after a 1.6% drop in Q1.
While politicians refuse to use the “R” word, plenty of experts – including Ark Invest’s Cathie Wood – are calling for a recession.
In fact, she made the call even before the official data came out.
“We think we are in a recession,” Wood said in a recent CNBC interview. “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.”
Based on how markets are doing, sentiment is certainly bearish. The S&P 500 is down 14% year to date. Wood’s flagship fund Ark Innovation ETF (ARKK) tumbled by 49% during the same period.
But investors are not giving up. CNBC noted Fact Set data showing that ARKK saw over $180 million in inflows in June.
“I think the inflows are happening because our clients have been diversifying away from broad-based benchmarks like the Nasdaq 100,” says Wood. “We are dedicated completely to disruptive innovation. Innovation solves problems.”