Ark Investment Management CEO, Cathie Wood has expressed her concerns over the state of the economy, stating that there is a high probability of a hard landing. This comes as the velocity of money slows down amidst an ongoing banking crisis.
In an interview with CNBC, Wood explained that "we are seeing some moves in interest rates that tell us that deflationary pressures are building". She went on to say that "the velocity of money is really slowing down", and added "I think we're headed into trouble".
Wood's comments have raised eyebrows among economists who still believe in a strong economic recovery post-pandemic. However, she pointed out that the Federal Reserve does not seem to see things in the same way, citing their recent announcement about tapering asset purchases.
The Ark Investment Management CEO further elaborated on her views saying: "We've got this banking crisis going on right now - Evergrande - and I think it could be leading to contagion." She continued by saying that these issues have potentially far-reaching consequences for both China and other countries around the world.
Wood's prediction is certain to spark debate among financial circles. While some experts believe there is no need for panic just yet, others warn against complacency given current market conditions.
As always with predictions like this only time will tell whether or not Cathie Wood's assessment comes true. Nonetheless, it is worth paying attention to her words given her impressive track record as an investor and analyst.