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Kathy Wood's last warning Kathy would delivers an open speech which claims that the Federal Reserve is to blame for the great economic crisis that is looming in the United States and that this could be one of the many causes for the recession of the year 2023. this speech has set off all the alarms because kathywood is someone with a lot of weight since she has a company called Arc which is in charge of managing Investments who is Kathy Wood is he really right in her speech is a big crisis really coming because of the Federal Reserve these questions and more will be answered in this video so don't take off on the screen that I will show you more content about it before starting the video I invite you to leave a like And subscribe to my channel to see more content like this without further Ado let's start with the video who is Kathy Wood one of the people who in recent weeks was on everyone's lips she was born in Los Angeles the eldest daughter of immigrants from Ireland Wood's father served in the Irish Army in the United States Air Force as a radar systems engineer in 1974 wood graduated from Notre Dame Academy in Los Angeles an all girls Catholic High School in 1981 wood graduated summa laude from the University of Southern California with a Bachelor of Science in finance and economics one of wood's teachers was The Economist Arthur Laffer who became Wood's Mentor in 2001 she joined Alliance Bernstein as Chief investment officer of global thematic strategies where she worked for 12 years managing 5 billion dollars later in 2014 after Alliance Bernstein deemed her idea of actively managed exchange-traded funds based on disruptive innovation wood left the company and founded arkinvest the company is named after the Ark of the Covenant as wood was reading the Bible at the time the first four Arc ETFs were seated with capital from archigos capitals bilhuang wood was named the best stock picker of 2020 by Bloomberg News editor-in-chief Emeritus Matthew a Winkler she is quite famous for predicting some of the biggest events in the world of economics in fact when all the companies fell due to the covid-19 crisis Arc her company maintained quite a significant growth in March when the covid-19 shutdowns began what correctly predicted that fast-growing tech companies would steer the world and financial markets toward recovery she zeroed in on Tesla and other of her favorite companies educational software company to you an online real estate platform Zillow for example however with her strong performance and her natural optimism she warned Forbes that the next five years will not be easy she expects a wide swath of large Industries to be affected by technological change with many workers displaced in that instability overall Market rates will sometimes be below expectations giving the opportunity to pick the innovators who stand to win today she has her eye on the Federal Reserve and in a speech she warned both the world and the government that if things continued the same way things would get incredibly worse she subsequently accused the FED of selling off the market due to fear from investors who believe the federal reserve's plan will continue to raise interest rates the global economy is in recession and recent stock market volatility is a sign that investors believe the federal reserve's plan to continue raising interest rates is too aggressive wood said it is not the outright increase in Fed rate hikes that poses the danger as it remains within historical norms rather it is the extremely fast pace that threatens to completely derail the economy and put an end to the boom period of the Roaring Twenties predicted by the celebrity investor If the Fed doesn't pivot the setup will be more like 1929.
she commented in her famous speech Unfortunately today it has some Echoes of the same the FED is ignoring the deflationary signs by her calculations a century ago the newly created U.S Central Bank raised rates from 4.6 to 7 for about two years until 1920 when it faced the inflationary pressures of World War One and the Spanish flu even though inflation is currently substantially lower than the 24 annualized at the time what says the FED has already increased its 16-fold from 25 basis points to 4 percent under President J Powell the FED Governors on the policy setting Federal Open Market Committee also went from pumping billions of newly minted dollars into the U.S economy until March to now reducing the money supply since June in a move known as quantitative tightening in addition it raised interest rates at a Breakneck Pace in parts of four consecutive 75 basis point hikes that culminated in its most recent meeting on November 2nd however adjusted for inflation policy remains very accommodative on Economist books with consumer prices running at an annualized pace of 7.7 in October so-called real rates remain deeply negative that means the interest burden on the debt decreases over time as the currency depreciates rapidly fed Governor Christopher Waller accordingly said the central bank still had a ways to go before the tightening cycle ended this will not end in the next meeting or two he said speaking in Sydney on Monday the NASDAQ Composite that best reflects Woods Investment Portfolio gains 7.3 percent that same day her best session since the first wave of the pandemic that struck two years ago in March fed critics like would have said that politicians like chairman Powell are committing the cardinal sin of driving while looking in the rearview mirror in other words they rely too heavily on hindsight data when steering the economy rather than leading indicators that predict where consumer prices will be in the immediate future the University of Michigan survey of consumer sentiment is at an all-time low below the levels reached in 2008 to 2009 and 1979 to 1982 would explained we wouldn't be surprised to see broad-based inflation turn negative in 2023 wood has enjoyed near Celebrity Status thanks to his Prussian bets on disruptive technology trends like robotics artificial intelligence and the shift to clean energy his fund management firm is known for intentionally recruiting its analysts not primarily from financial backgrounds but from Silicon Valley to stay ahead however the feds move to fight inflation has been toxic to the high growth high-risk tech stocks that has long favored Woods Flagship ETF Arc Innovation which manages some 7.6 billion dollars in assets has lost 60 percent of its value since the start of 2022.
the losses have been so sharp that the fund is now only worth 11 percent more over a five-year period compared to a 66 percent increase in the broader NASDAQ Composite over the same period the 7.9 billion dollar Arc Innovation fund which gained two percent in Tuesday trading but is down 57.6 year to date overall the fund is now down nearly 75 from its all-time high in February 2021 and near the 34.69 low it hit in March 2020 at the start of the coronavirus pandemic the fund added a position in General Motors Co largely due to signs that it is serious about moving to electric vehicles what's said during Tuesday's webinar although Tesla Inc is still the largest overall position of it despite its losses Arc Innovation continues to attract investor interest the fund has received positive net inflows over the past four weeks including 455.7 million dollars in net inflows the week ending May 4th according to Lipper data in recent times what has also given some pretty weighty predictions such as the fact that Bitcoin in the year 2030 could be worth more than a million dollars bitkin is currently stuck at sixteen thousand dollars a two-year low following the sharp correction caused by the bankruptcy of bahamas-based cryptocurrency exchange FTX at a critical moment for the entire cryptographic universe Kathy Wood the queen of atf's index funds passive management comes out again in defense of bitcan and affirms that it will reach a million dollars in 2030.
Woods forecast assumes that the world's most popular cryptocurrency Rose 6150 from the current price while Bitcoin lost more than 70 from the all-time highs recorded a year ago at 68 991 dollars with no sign of recovering what was lost obviously we will not expand more on this because it would already be a topic for another video but like the previous topic with this one on bitcoin you would have to at least listen to it to know what it says without a doubt Wood's words always carry weight when she talks about the direction of the American economy and Investments since she is considered a guru in the environment and even more so she is heard when she talks about the fatalities that could happen to the American economy which is what everyone is most worried about for the reason that a recession is supposedly coming in 2023 and everyone is trying to save the direction of the country what do you think do you think Kathy what is Right In Her speech or do you think they are just words and there is nothing to worry about leave me your opinion Below in the comments do you like our content do not stop being subscribed to our YouTube channel and if you are not I invite you to subscribe and also leave a like to enjoy more content similar to this see you in the next video
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