Star hedge fund manager Cathie Wood says a market correction is coming, but only after artificial intelligence ignites a productivity surge across the US economy.
In a new interview on CNBC’s Squawk Box, ARK Invest CEO Cathie Wood says investors should expect a shift in the macro narrative as the AI buildout transitions from hype to real output gains.
According to Wood, the AI-driven productivity gains will force the hand of the Federal Reserve to raise interest rates after the midterm elections in an effort to stop the US economy from overheating.
“I think we’re going to reach a moment in the next year where the conversation will shift from lower interest rates to rising rates. But it will be for a good reason. We think that the economy, the US and the rest of the world, of course, will participate and is going to move into a productivity-driven boom just in time for our midterm election.
So I think when interest rates reverse, there will be a shudder…. We think that there will be a reality check, shall we say.”
But looking at a long-term investment horizon, Wood says ARK continues to focus on companies exposed to deep-tech secular trends she believes will converge to unleash exponential growth across the economy.
“We’re focused on the future and pure plays in the innovation space around robotics, energy storage, AI, blockchain technology, and especially multiomic sequencing in the healthcare space… We think they’re converging to create really explosive growth opportunities.”
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