$BTC The CEO of Ark Invest says the U.S. economy is in recession, but there’s a catch.
July 1, 2025
In a new interview with CNBC, Ark CEO Cathie Wood shares her perspective on the U.S. economy.
Well, I think we are scaling a wall of worry. I mean, a lot of people expected tariffs, wars, and the controversy between the Fed and the president to really shake the markets. And, of course, there has been some volatility. But these are the types of bull markets that I find most durable, when the market overcomes all this controversy. This is really signaling something. And I think what it is signaling is: interest rates are probably falling.
And I think what many people are not paying attention to in the inflation statistics are the numbers from the real estate market. And they come in with a significant lag. We believe that the shift, or the concentration in just a few stocks – which was a very detrimental bull market – is changing, and the market is expanding. And I think deregulation is probably one of the most important measures this government is taking to unleash animal spirits.
When asked what she thinks about opposing views – that the economy is doing well – Wood points to numbers from the real estate and industrial markets before making her prediction that all of this will transition smoothly into a recovery.
Well, I think we have been quite consistent with this idea that we are going through a continuous recession. If you look at the real estate market, which is having a slight setback today, the real estate market plummeted in 2022 when interest rates skyrocketed, and it has not recovered. The industry has not recovered.
And therefore, we believe they will recover as interest rates fall, deregulation consolidates, and some certainty about tax cuts and so forth emerges – including the immediate expensing, perhaps, of capital goods, which would be very positive. So, we believe we will transition from a continuous recession to a recovery.
