Ark Invest CEO Cathie Wood sees big things ahead with President-elect Trump back in the White House. Over the weekend, she predicted that his policies will spark economic growth not seen in decades.
In a post-election message to investors, Wood compared today’s economy to the early 1980s. That’s when President Reagan’s tax cuts and Federal Reserve rate cuts created explosive growth, helping the U.S. move from a deficit to a surplus by the Clinton era.
Deregulation (defanging the SEC, FTC, and others), government spending cuts (making room for the private sector), tax cuts, and a focus on technologically enabled innovation are likely to turbocharge the US economy more powerfully than during the Reagan Revolution. https://t.co/S2BBd0p0bR
— Cathie Wood (@CathieDWood) November 11, 2024
She posted on X, saying that Trump’s policies "are likely to turbocharge the US more powerfully than during the Reagan Revolution."
Wood highlighted Trump’s promise to cut taxes and reduce regulations, much like his first term. She also pointed out Trump’s plan to team up with Tesla CEO Elon Musk to reduce government spending during his second term.
"Now the deficit will go down, we think, because of growth," Wood explained. "But also, the inefficiencies in government are extreme, and we believe Elon Musk… will figure out ways to shrink the government through attrition, head count, and technology productivity gains."
Back in June, Wood revealed that she would vote for Trump over Vice President Kamala Harris. She argued that Trump would be best for the economy.
"Look, I am going to vote for the person who's going to do the best job for our economy," Wood said in a "Meet Kevin" interview. "I am a voter when it comes to economics, and on that basis, Trump."
She added that economist Art Laffer views Trump’s first three years in office as the best in U.S. economic history, and Wood agreed. "Not the last one because of COVID," she said.