Ark Investment Management CEO, Cathie Wood, has expressed her concern about the possibility of an economic hard landing as the velocity of money slows down amid the ongoing banking crisis. According to Wood, the Federal Reserve isn't taking this issue seriously enough.
"Cash is piling up on balance sheets and not being used for investment," said Wood in a recent interview. "The velocity of money is slowing down, which could lead to a hard landing."
Wood's warning comes at a time when many experts are already expressing worry about an economic downturn caused by various factors such as inflation and supply chain disruptions. However, she believes that the situation could be much worse than anticipated if policymakers continue to ignore the underlying issues.
"The Fed doesn't see this coming," said Wood. "They're still focusing on employment numbers without recognizing that we have structural problems that need fixing."
Despite her concerns about a hard landing scenario, Wood remains optimistic about long-term growth prospects for innovation-focused companies.
"We believe there will always be winners and losers in every cycle," she added. "We're focused on investing in companies with disruptive technologies that can deliver outsized returns over time."
As investors watch developments closely in these uncertain times, it remains to be seen how events will unfold going forward – whether policymakers will take heed and act accordingly or whether we'll see yet another economic crisis unfold before our eyes. The only thing certain is that vigilance is key when it comes to navigating today's financial landscape.