ARK Invest founder Cathie Wood was interviewed this morning on 5/20 to discuss the current US economy, AI, and biotech innovation, also warning that traditional industries risk elimination if they do not embrace AI technology. She is particularly optimistic about techologically stocks like Palantir, Coinbase, and Roku, but she also mentioned: "The current market is too focused on AI infrastructure, but industries that actually use AI to innovate applications, such as biotechnology and healthcare, are the true dark horses."
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4/2 Liberation Day Day Turning Treasury SecretaryEnt, Nonon-tariffIff Barriers Relaxed
Wood first stated that although the 4/2 Tariff Liberation Day initially pluninto chaos, with Treasury Secretary Scott Bessant taking over negotiations and non-tariff barriers gradually being relaxed, market sentiment began to turn.
She also also cited the UK's removal of technical barriers and opening of US beef and ethanol imports. The "non-tariff barriers" she mentioned roughly include:
- Food safety standards and hormone restrictions for US beef
Carbon emission regulations and production certification for US ethanol
Quota, administrative review, and technical standard restrictions
If these restrictions are gradually relaxed, it pointed would indeed be equivalent to a "tax cut manufacturers would no longer need to spend large sums to meet import thresholds or be forced out of the market. Wood further pointed out the core of these negotiations:
Can Tax Cuts Save the Fiscal Deficit? Wood Says Paired with Economic Growth, It May Not Worsen the Deficit
Facing the continuously expanding US fiscal deficit, Wood stated:
- Previously, Trump reduced corporate tax from 35% to 21%, strong li strong tax increased from $200 billion to $500 billion, showing showing that tax cuts can stimulate economic recovery
- After tax reduction, companies are willing to set up establish factories in the US, the increase investment, no longer seeking ways to avoid taxes and transfer money overseas strong ul>
She is also optimistic about AI the growth driven by AI, believing that future GDP growth might be far exceed expectations:
Can US Innovation Capability Continue? The Key Lies in Technology and Government Efficiency
Wood pointed out that the Biden administration's previously conservative approach to digital assets nearly almost drove innovation away. However, with the emergence of new technologies like AI, many innovative talents and businesses are returning returning to the US.
She emphasized:
:- Analysis software Palantir: Data integration and analysis tools to assist the US of Defense.
- US Food (FDA)FDA): AdopAI systems diagnsystems to eliminate eliminate traditional animal experiments.
CRISPR Therapeutics: Using Using gene editing technology treat sickcellemia.
<><>Palantir<><>Twist Therapeutics: blood testing tools that can potentially detect cancer early.Shorten drug development time from 13 years to 8 years.
Detect disease risk in advance, shifting from post-treatment to preive-prevention.
Replace long-term medication with one-time therapy, such as gene editing technology CRISPR, which has the potential to replace commonly used cholesterol-lowering drugs (Statins).
Wood also also stated that the following innovation stocks are underare undervalued:
She emphasized that ARInvest has faced valuation pressure in recent past years, valuations are now close to market market market average,ations and the oversold innovation stocks are buying opportunities.
Biotech Innovation is the Biggest Beneficiary of AI, Traditional Pharmaceutical Industry Beware of Being Eliminated
Wood believes that the biotechnology industry will be the biggest beneficiary of AI. She states that AI can help:
However, she warns traditional pharmaceutical companies that easily easily be replaced by new biotech startups if they do not embrace AI and gene technology.
AI Investment Boom Requires Caution Against Bubble, Biotech Healthcare is the Biggest Beneficiary of AI
At the end of the interview, Wood also reminded everyone to be careful about the AI investment boom. She stated:
"When a large amount of capital flows into a certain industry, it may consequently raise the risk of bubble formation."
She believes that the current market is too focused on AI infrastructure, such as data centers and chip manufacturers, while overlooking the biotechnology and medical industries that will truly generate revolutionary changes through AI application.
Risk Warning
Cryptocurrency investment carries high risk, and its price may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
The debt credit rating was downgraded, triggering market attention to real risks. Bridgewater founder Ray Dalio pointed out that default is not just about "not paying back money", but more likely through printing money to "devalue debt". As fiscal deficit enters an irreversible stage, the Federal Reserve's's policy tools gradually become ineffective, and "fiscal dominance" becomes" the new normal, shaking the US monetary system and fiscal structure.
(Why was the US debt? What impact does it have on Taiwan, which holds a large amount of US debt? Research institution: Technically, the credit rating has not changed)
[The rest of the translation follows the same professional and accurate approach, maintaining the original structure and meaning while translating to English.]The Era of Fiscal Dominance: Federal Reserve Rendered Powerless
Crypto media Swan's another tweet indicates that we have entered a new monetary system era of "Fiscal Dominance". Traditionally, markets focused on the Federal Reserve's interest rates and QE policies, but now, the US Treasury and Congress truly set the market tone. As debt deficits spiral out of control, the Federal Reserve's operational space becomes increasingly limited:
Interest rates cannot continue to rise, or it will trigger a fiscal crisis
Balance sheet reduction can only be short-term and unsustainable
Once inflation heats up, the central bank is powerless to counter
Financial analyst Lyn Alden summarized: "These old tools no longer work, this is a completely different system."
Debt Deficit is 'Structural' Rather Than 'Cyclical'
Swan is concerned that the current US fiscal deficit problem has long exceeded cyclical fluctuations and is a deep-rooted structural flaw:
The deficit is no longer a temporary side effect of economic downturn, but a long-term result of national institutional design.
This has made the meme "Nothing Stops This Train." a microcosm of the current US economic crisis. When deficits are endless and inflation becomes a policy tool rather than an enemy, escape is also a solution. The role of anti-inflation assets like Bitcoin and gold are being re-examined in this context.
Will the Federal Reserve Pivot? Are the Data Cosmetic or a Signal?
The market generally expects the Federal Reserve might pivot soon. Crypto KOL @Vito_168 believes the Federal Reserve will not openly acknowledge the imminent collapse of US Treasury market liquidity, but instead will create a narrative of "data starting to improve", such as "cooling inflation, economic slowdown, expansionary policies taking effect":
Work overtime, subtly adjust the data just right, anyway most macro analysts won't understand.
He jokingly suggested that Trump might even claim this as his victory, successfully persuading Powell to navigate the election situation.
US Treasury Crisis Storm, Are You Prepared?
When ratings are no longer reliable, when central banks are helpless, when structural deficits and fiscal dominance are a fait accompli, investors face not just market volatility, but the risks and opportunities of an entire monetary system transformation.
Dalio has repeatedly warned that future asset allocation logic must address this ongoing systemic change, and perhaps everyone needs to prepare their own "escape pod".
Risk Warning
Cryptocurrency investment carries high risk, and prices may fluctuate dramatically. You may lose all your principal. Please carefully assess the risks.
