×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: us economic growth | energy prices | ark | cathie wood

Slowdown in US Economy Ahead as Oil Prices Spike: ARK's Wood

Slowdown in US Economy Ahead as Oil Prices Spike: ARK's Wood

Tuesday, 08 February 2022 02:21 PM EST

Oil prices near seven-year highs will likely weigh on the U.S. economy and push inflation pressures down over the next year, star stock picker Cathie Wood of ARK Invest said in a webinar on Tuesday.

Wood, who became a household name by betting on high-valuation, high-growth stocks that soared during the early stages of the pandemic, remains one of the few prominent fund managers who say that deflation, rather than inflation, will be a driving force in the U.S. economy and stock market over the next few years.

Believes US Productivity Will Soar

Concerns about inflation have weighed heavily on Wood's portfolio of stocks as rising interest rate costs cut into the valuations investors appear willing to pay for companies.

Yet advances in technology will likely push productivity rates higher, outweighing any gains in wages, Wood said.

"We have a very strong point of view that productivity gains we will witness over the next five to 10 years will be astonishing. We think productivity will increase 5%-plus, and we won’t have an inflation problem," she said.

Wood's flagship $12 billion ARK Innovation Fund was down 0.9% in afternoon trading Tuesday. The fund has large positions in companies including Tesla Inc, Teladoc Health Inc , and Roku Inc.

The fund was down 23.4% for the year-to-date through Monday, putting its performance near the bottom of the 607 U.S. mid-cap growth funds tracked by Morningstar. The benchmark S&P 500 index was down 5.2% over the same time.

Investors pulled nearly $148 million from the ARK Innovation Fund for the year-to-date through Feb. 2, according to Lipper data.

© 2022 Thomson/Reuters. All rights reserved.


StreetTalk
Oil prices near seven-year highs will likely weigh on the U.S. economy and push inflation pressures down over the next year, star stock picker Cathie Wood of ARK Invest said in a webinar on Tuesday.
us economic growth, energy prices, ark, cathie wood
265
2022-21-08
Tuesday, 08 February 2022 02:21 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved