Ark Invest CEO Cathie Wood has been quieter than usual on social media as of late, but on the evening of Oct. 26, she disclosed via her X account that she's been watching an economical trend that isn't being properly spelled out in government statistics: just how weak the economy is.
"Government statistics do not seem to be capturing how weak the economy is. Many companies are reporting shockingly weak revenues. UPS'sU.S. delivery volume growth is worse today than in 2007-2009. After falling for nearly two years, it dropped another -11% last quarter," she said.
At first I thought that Amazon still was taking share and causing problems, but this chart suggests that market share has changed very little since 2020.Wood also points out that U.S. employment is still strong, which supports the government's point of view. But Ark Invest's take is a much darker one, as the savvy investor goes on to explain.
…if we are right that prices are about to unravel and crush margins, then companies will be forced not only to lay off excess labor but also to harness AI and other automation to salvage margins. Innovation solves problems and gains traction during tough times!It's no surprise to hear Wood mention AI and automation in a positive light, as her top investment in Ark's portfolio has been Tesla for quite some time .
But some of her recent moves don't quite line up with her bullish stance on the sector — she's been dumping both Tesla and NvidiaBut perhaps most telling of all is that despite Wood's constant vocal support for Tesla, especially its full self-driving technology, she's sold off hundreds of thousands of Tesla shares since the summer, bringing the holding below 10% for the first time in a while.
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