ARK Invest’s Cathie Wood is predicting that recessionary pressures will soon end, setting the US economy up for a massive economic boom in the second half of 2025.
Wood tells her 1.7 million followers on the social media platform X that the US economy is currently experiencing the final stages of a rolling recession, setting the country up for a bullish phase.
A rolling recession is an economic term used to describe the phenomenon of different sectors of an economy experiencing contractions and recoveries at different times, preventing a full-blown recession.
Explains Wood,
“In our view, the market today is discounting the last leg of a rolling recession, which will give the Trump administration and the [Jerome] Powell Fed many more degrees of freedom than investors expect, setting up the US economy for a deflationary boom in the second half of this year.”
She also says during a new interview with Pomp Investments founder Anthony Pompliano at the Bitcoin Investor Week in New York that if US Congress adopts an expected tax cut plan, it could help reduce market uncertainty and unleash economic productivity.
“If we said we’re taking your tax rates down, choose a percentage, three percentage points, retroactive if they did this very soon to February 1 or March 1, let’s say, and they finish the negotiation that would take the uncertainty away. That would take that very important uncertainty away. And honestly, I think we will have a booming economy with much lower-than-expected inflation…
After we’ve been through this rolling recession and now here’s the last leg of it, where housing, autos, capital spending, small businesses were creamed, lower income creamed, finally, high income cracking, we’re ready for a massive productivity increase…
Productivity increases and a rising dollar are two of the biggest antidotes to inflation. And I think we’re going to be shocked at how low inflation goes.”
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