Ark Investment Management CEO Cathie Wood shared her observations on an economic trend that seems to be slipping under the radar of government statistics.
What Happened: On Thursday, Wood emphasized the fragility of the current economy, which, in her view, is more precarious than official figures suggest.
Highlighting her concerns, Wood said on X, “Government statistics do not seem to be capturing how weak the economy is. Many companies are reporting shockingly weak revenues. United Parcel Service, Inc. UPS delivery volume growth is worse today than in 2007-2009. After falling for nearly two years, it dropped another -11% last quarter.”
Wood further elaborated on her stance by referencing 3M Co MMM, a company she regards as an “economic bellwether.” She noted its 3% decline in global organic sales year-over-year in the previous quarter. This, she believes, indicates potential challenges for the services sector, especially with the ongoing global monetary tightening, according to The Street.
Also Read: Cathie Wood’s $3 Million Bet On An Ultra-Cheap Stock Revealed
Despite the government’s optimistic view on U.S. employment, Wood’s analysis offers a contrasting perspective.
She said on X, “In our view, labor hoarding after two years of vacancies is a reason on the demand side, while loss of purchasing power – especially food and energy – is a reason on the supply side.”
In response, Elon Musk, the CEO of Tesla Inc, expressed interest in Wood’s insights, commenting on the thread.
Wood’s advocacy for AI and automation is evident in her significant investment in Tesla. However, her recent financial moves, including the sale of substantial Tesla and NVIDIA Corp NVDA shares, have raised eyebrows in the investment community.
Now Read: Here’s Why Cathie Wood Says Bitcoin Could Explode By Over 3,500% From Current Levels
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