Renowned investor and CEO of Ark Investment Management, Cathie Wood, has warned that the economy could be headed towards a hard landing. She cited the slowing velocity of money amid an ongoing banking crisis as cause for concern.
In a recent interview, Wood expressed her worries about the state of the economy and criticized the Federal Reserve's lack of action in response to these developments. According to her, "the Fed doesn't see this coming" and is not taking adequate measures to address potential risks.
Wood's warning comes amid increasing turmoil in global financial markets as banks struggle with liquidity issues. The COVID-19 pandemic has further exacerbated these problems by disrupting supply chains and causing widespread economic uncertainty.
Despite these challenges, some investors remain optimistic about future prospects. However, Wood maintains that caution is necessary given current conditions: "We're in a very precarious situation right now," she notes.
As one of Wall Street's most successful fund managers, with her flagship ARK Innovation ETF up over 150% last year alone, Cathie Wood's predictions carry significant weight in financial circles. Her concerns regarding the economy should serve as a wake-up call for policymakers and investors alike to heed potential risks on the horizon.