Cathie Wood has made another bold call for the U.S. economy and stock market.
In the 2026 outlook letter released on January 15, ARK Invest founder and CEO stated that the U.S. economy is accumulating energy for a sharp rebound.
“Despite sustained real GDP growth over the past three years, the fundamentals of the U.S. economy have suffered a rolling recession and have evolved into a coiled spring that is likely to rebound strongly in the coming years,” she said.
Wood said high post-COVID interest rates have squeezed the economy, hitting real estate, manufacturing and non-artificial intelligence investment. But she is optimistic that easy interest rates and rising productivity could unlock growth potential.
Wood wrote in a post on
“Early in my career, I remember how deregulation, tax cuts, sound monetary policy, and peace through strength sent the dollar soaring, thereby limiting gold prices,” she explained.
During the Reagan era, the combination of these forces helped the market enter a secular bull market that lasted through much of the 1980s and 1990s.
“The Trump administration’s policies echo the Reaganomics of the early 1980s, when the dollar nearly doubled,” Wood said.
Cathie Wood earned her reputation after the Ark Innovation ETF delivered a 153% return in 2020.Getty Images · Getty Images
Wood focuses on emerging high-tech companies in areas such as artificial intelligence, blockchain, biomedical technology and robotics.
The Ark Innovation ETF rose to fame after achieving a 153% return in 2020. In 2025, the flagship Ark Innovation ETF (ARKK) rose 35.49%, far exceeding the S&P 500’s 17.88% return during the same period.
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Tesla (TSLA): 10.14%
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CRISPR therapy (CRSP): 5.29%
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ROKU: 5.09%
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Coinbase Global (COIN): 5.07%
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Tempus Artificial Intelligence (TEM): 4.98%
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Shopify (store): 4.67%
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Robin Hood Market (HOOD): 4.06%
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Beam Therapy (BEAM): 3.79%
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Palantir Technology (PLTR): 3.57%
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Roblox (RBLX): 3.54%
Wood’s style has delivered sweet wins in rising markets, but also painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF plunged more than 60%.
These fluctuations affected Wood’s long-term performance. Morningstar data shows that as of January 16, the Ark Innovation ETF’s five-year annualized return was -10.31%, while the S&P 500’s annualized return during the same period was 14.66%.
According to analysis by Morningstar analyst Amy Arnott, the Ark Innovation ETF lost $7 billion in investor wealth from 2014 to 2024. That makes it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s rankings.
