Ark Invest CEO and CIO Cathie Wood look at the macro outlook. She says that there are all kinds of signals pointing to lower inflation. The company is a crypto and tech firm based in California. Ark Invest believes inflation will come down to the 2% Fed Target level by 2023. The firm believes the inflation rate will fall below the target level of 2%. This would be good for risk-based investments such as crypto as the macroeconomic outlook improves and financial belts are loosened.
The market is waiting for a signal from the federal reserve. However, Wood predicted inflation could fall below this level even into negative territory because the money supply has been falling. She stated that Ark Invest portfolios should do very well if interest rates are about to fall below expectations. Ark has a crypto asset fund, blockchain venture investments, a disruptive innovation fund, and six active techs and fintech exchange-traded funds.
Brett Winton, Ark’s chief futurist, predicts that crypto will see a big turnaround this year. Ark Invest’s most recent move was to take profit on some of its Grayscale Bitcoin Trust (GBTC) holdings and load up on 320,000 Coinbase (COIN) shares worth around $17Six million coinbase shares will be sold in 2023.
