Cathie Wood Reacts to the Market Crash – “THIS WAS ALL PLANNED!” #Finance

this is a very active time in the market I don’t have to tell you uh but uh this week uh the vix crossed 65 um which uh is the fourth largest uh measure of volatility in the market uh really in the last 40 50 years and I’ve been around for all of them uh so it’s Fourth

after ‘ 0809 uh that Tech and Telecom bubble in 2000 and 1987 the recent Global Stock Market which swiftly spread through other Markets including the

href="https://cashnews.co/crypto" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Cryptocurrency market still has investors and Traders concerned and shaken about the trajectory of the US and global economy despite the past few days rebound the fears about the

href="https://cashnews.co/markets" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Markets have not been helped by legendary investors like Warren Buffett who have been increasing their cash pile at the highest Pace since just before the global finan ccial crisis in 2007

Warren Buffett’s Nebraska based conglomerate birkshire hathway has reduced several stock positions and slashed its stake in apple its top stock holding which investors and Traders are taking as a sign that Buffett is bracing for a bigger crisis in the coming months at a record $276.5 billion

berkshire’s cash and equivalents as a proportion of its total Assets are now back to their previous highs from the early 2000s just just before the great financial crisis which saw the iconic investor scoop up a lot of Investments at ridiculously low prices

in a recent CashNews.co update Ark invest founder CIO and CEO Kathy Wood explains that the recent crash might be a precursor to a bigger crisis one that could easily rival the 0809 crisis in both severity and duration according to Cathy what is happening at the moment can be described as a complete

Purge as the market is coming to terms with recent events and moving things around to suit the new environment Cathy is firmly convinced that The Purge is nowhere near complete and there’s still so much more to brace for as we bring you clips from Cathy’s CashNews.co please take a

little time to like this CashNews.co subscribe to the channel and turn on post notifications for more CashNews.cos like this everything you do helps with the YouTube algorithm and immensely contributes to the Channel’s growth thanks and enjoy the CashNews.co now what does this mean this

volatility alert it usually means uh the market is meet meeting a cathartic moment or is in a cathartic moment uh and it usually means something is changing uh and as you know we have believed for quite some time that the the US economy and maybe the global economy has going has been going through

a rolling recession ever since the fed started raising Interest Rates uh well the other thing that was happening during that time apparently uh was an increase in the carry trade involving borrowing Yen so really shorting Yen and buying dollars and investing them into higher

Yielding Assets than uh in Japan so playing the spread uh the other reason this became a a very widespread trade is the Yen has been depreciating uh so shorting Yen meant uh that the investor or the Speculator was benefiting from the Yen going down well that

changed abruptly this week uh as the bank of Japan increased rates more than expected and seemed more determined uh to continue increasing rates than many people expected so uh apparently lots of margin calls and uh and a sell-off in a lot of Assets uh and now the vix has calmed

down now we’re not sure if the carry trade has unwind completely JP Morgan is saying uh we’re halfway there so perhaps we’ll see some more volatility but uh I I do believe that the FED now is on high alert uh because uh the Stock Market seemed to be encouraging

the FED to hold tight higher for longer make sure that Inflation was out of the system and as you know we’ve been saying for quite some time that uh Inflation is unwinding much faster than we’re seeing in the traditional indexes right now the CPI is at

3 .1 but uh by other metrics we’re seeing prices fall and we would not be surprised to see prices fall uh a little more broadly as the consumer weakens now why is the consumer going to weaken or continue weakening uh it we believe it’s because corporations are losing pricing power and

in order to salvage margins they’re going to be doing two things they will be laying people off and uh they will be uh accelerating moves to increase productivity so the unemployment rate will go up that certainly uh is getting the FED to change its spots as we’re listening to Chairman

Powell and I think now that household Net Worth being hurt by the Stock Market going down is another reason that the FED is uh going to relent now one uh last thought here Interest Rates coming down should be a very positive for the

Equity Markets uh but uh they will not Arrest A A recession very quickly in fact if consumers and businesses know that Interest Rates and maybe prices are

coming down what will they do they will wait Kathy believes the crash will completely change investors behavior and Reliance on current benchmarks at the moment the Magnificent 7 pretty much dominate the stock text-decoration: none;">Markets and during moments of trouble such as this investors turn to them for sucker and Assurance Cathy’s florida-based investment management firm Arc invest has been making a huge bet on disruptive innovation since it was founded in 2014 Cathy believes these

Technologies artificial intelligence DNA sequencing crisper Gene editing robotics electric vehicles energy storage fintech 3D printing and blockchain Technology will gradually begin to replace the current benchmarks this is why Cathy is betting so much on these Technologies predicting they will

grow exponentially from less than $20 trillion today to over $200 trillion by 2030 in stark contrast to Cathy’s less optimistic near-term predictions fund strats Tom Lee believes the worst of the Stock Market scare is over early ear this week Lee pointed out that the CBOE

volatility index which made history when it soared a record 172% on Monday is now cooling suggesting that the bottom is in for the Stock Market Lee repeats similar sentiments in a recent interview with CNBC television explaining that the recent crash was caused by the

href="https://cashnews.co/markets" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Markets grappling with the threats of War red flags in the US Labor Market and the unexpected unwind ing of the Japanese carry trade Lee believes each of these threats is correctly being handled

and the market is moving on to other more positive issues here are some clips from the interview the thing that we’re watching is The Vic Spike to 60 on Monday which is the third highest reading ever and the vix Futures curve inverted which was the steepest inversion since

the pre-pandemic times both are starting to normalize I think the vix as it closes below 20 and hasn’t closed yet and as that Vick’s Futures term structure uninverted that tells us the worst of the panic is behind us I don’t think it means we won’t have

Ripple effects because we know there’s some trapped bulls and you know there’s still some nervousness around Iran and how much of this Yen carry trade has to unwind but I think the worst of the selling pressure is behind us well I think investors when it comes to the growth scare side

have something they can check every week which is weekly jobless claims because that’s what was a positive surprise on Thursday and a lot of it came from Texas Texas had a big drop um in weekly claims week over week fact that color: #1a73e8; text-decoration: none;">Markets reacted so positively Thursday to that jobless claims number puts me in the camp that that’s one of the big drivers because we had a better than expected claims number and then the market popped I think the growth scare is what’s on

investors minds and next Thursday they’ll get another weekly claims number and if that’s also equally improving or stable I think it’s going to give people a lot more conviction what about the unwind of the carry trade nobody knows how big the that carry trade could be I think

there there is a large Insurance industry participation in that and I did speak to some Insurance Executives this past week as their view is there’s a lot of financial institutions that actually implemented this trade but if it unwinds in an orderly way

it’s not disruptive it’s just that if if you have weeks or days like month Monday or or last week the end of last week that’s very disorderly and that that gets very expensive because these Insurance companies have to take off these Hedges and then they suddenly

have unhedged carry trades What If there really is more of that to come Tom Scott there there may be more of it I think one thing that is been messy is the currency Hedges because these currency Hedges were built for what You’ call like 1 percentile events you know 99 percentile uh standard

deviation so a bigger move than that is what C makes these Hedges so expensive they just let them expire I think central banks can manage currencies within a one standard deviation band so I think it’s still important to watch currencies but is if it’s a if we’re staying in stable

and predictable ranges it can be a orderly unwind but yeah Scott that’s that’s an uncertainty just like the Middle East is an uncertainty as well but Markets climb a wall of worry

Kathy and Lee have presented opposing views about what’s next for the Markets while Cathy envisions some more turbulence for the US and global economy especially in the mid to near-

term Lee who’s more focused on the short term believes the worst is over and that the recent bounce will continue for much longer however Lee does not discount the possibility of more turbulence if other issues crop up later these issues include signs of more weakening in the US Labor Market

an escalation of the war in the Middle East or other issues that can send the Markets into an immed mediate spin much like what we witnessed late last week and on Monday please share your

comments and observations on Cathy’s and Tom’s interviews in the comments section below as well as your own assessment of the current market situation do you agree with Kathy that there’s more to come or Le analysis that a bigger unraveling of the market can simply not be allowed

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