Ark female stock god: The market is about to reach the bottom, and the Fed will release water into a deflationary boom in the second half of the year

Cathie Wood predicts that the rolling recession is coming to an end and the market may usher in a deflationary boom, but whether it comes true depends on Fed policy and economic development. (Synopsis: Why did Bitcoin fall below 80,000? White House crypto summit mixed reviews, Trump tariff war deepens recession worries U.S. stocks plummet) (Background supplement: U.S. stock flash crash" Bitcoin fell below 77,000, Ethereum lost $1,800, Tesla plunged 15%.. Cathie Wood, founder of A RK Invest and known as a female stock god, recently said in an X article that the market is currently digesting the final stage of the rolling recession, which may give the Trump administration and the Federal Reserve more room for policy adjustments than the market expects, and then push the US economy into a "deflationary boom" in the second half of this year. She believes that the Fed's monetary policy will be more flexible, and the market may underestimate the potential economic rebound momentum. As different industries take turns out of recession, the U.S. economy has the opportunity to regain growth momentum in the face of cooling inflation, and may even form a rare situation of low prices and high growth. What is a rolling recession? Rolling recessions are no longer "one-time in place" Rolling recessions are different from traditional recessions in that they do not erupt all at once, but gradually affect different industries or regions. For example, the manufacturing sector may first decline, then the consumer sector may begin to slow, while the technology sector remains strong, and by the time the tech sector is affected, other industries may have begun to recover. This phenomenon does not plunge the economy into a deep recession at once, but shows a rotational cooling, and although some industries are affected, the job market is still supportive. Deflationary prosperity: the ideal economic playbook, or an elusive dream? Cathie Wood's "deflationary boom" is a relatively rare economic phenomenon that refers to falling prices (deflation) while maintaining strong economic growth. This usually happens when technological innovation leads to productivity gains, or when there is a major shift in monetary policy. For example, the development of AI, automation technology and new energy technology may effectively drive down production costs, enabling companies to maintain growth momentum in a low-price environment, thereby promoting further economic expansion. Cathie Wood believes that the market may underestimate the possibility that the Fed will ease monetary policy. Once the U.S. economy emerges from a rolling recession, the U.S. may usher in a new wave of economic expansion, risk assets will benefit, and technology stocks may even usher in even stronger gains. In our view, the market is discounting the last leg of a rolling recession, which will give the Trump Administration and the Powell Fed many more degrees of freedom than investors expect, setting up the US economy for a deflationary boom in the second half of this year! — Cathie Wood (@CathieDWood) March 10, 2025 Market and investor views diverge The market's views on Cathie Wood are still divided: Proponents argue that her analysis is based on years of market experience, and that technological innovation may indeed lead to productivity breakthroughs that support the possibility of a "deflationary boom." Opponents question that the market environment is too complicated, and that the Fed still has to deal with inflation and government debt, arguing that the economy is unlikely to achieve a deflationary boom in the short term, and may even repeat the stagflation of the 1970s. Related reports Why Bitcoin fell below 80,000? White House crypto summit mixed reviews, Trump tariff war deepens recession worries U.S. stocks plunge U.S. stock flash crash" Bitcoin fell below 77,000, Ethereum lost $1,800, Tesla plunged 15%.. Market worries about recession come true Wall Street rumors: Trump deliberately triggered a recession, in order to resolve the $36 trillion debt crisis (Ark female stock god: the market is about to reach the bottom, the Fed will release water into deflationary prosperity in the second half of the year) This article was first published in BlockTempo "Dynamic Trend - The Most Influential Blockchain News Media".