Cathie Wood Calls US Economy 'Coiled Spring' In 2026 Outlook, Predicts 'Golden Age'

In its 2026 outlook released connected Jan. 15, ARK Invest CEO Cathie Wood declared the U.S. system a “coiled spring” poised for a almighty rebound, forecasting a “golden age” for U.S. equities comparable to the roar of the 1980s.

Wood argues that the “rolling recession” of the past 3 years—triggered by the Federal Reserve's assertive complaint hikes—has coiled the system tight. With deregulation, taxation cuts, and falling involvement rates present converging, she predicts this hostility volition effect successful a surge of GDP maturation and wealthiness creation.

Drawing parallels to her aboriginal career, Wood termed the existent situation “Reaganomics connected steroids.” She posits that the operation of fiscal stimulus and pro-business deregulation volition unleash superior spending, peculiarly successful artificial quality (AI) and robotics.

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According to Wood, this backdrop creates a cleanable tempest for innovation-led growth, benefiting the ARK Innovation ETF (BATS:ARKK) and the broader S&P 500 tracking SPDR S&P 500 ETF Trust (NYSE:SPY).

She projects that existent GDP maturation could accelerate to 6-8%, driven not by inflation, but by a 4-6% surge successful productivity that suppresses portion labour costs.

The adjacent 3 years could beryllium Reaganomics connected steroids, different aureate property for the US equity market. Back then, aboriginal successful my career, I retrieve however deregulation, taxation cuts, dependable monetary policy, and bid done spot sent the dollar soaring, which enactment a lid connected the golden price! https://t.co/kVRmZlQsNZ

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Central to the “coiled spring” thesis is the lodging market. Wood highlights that existing location income person been suppressed to levels past seen successful the aboriginal 1980s, contempt a importantly larger colonisation today.

As rates stabilize and inventory unlocks, she expects a crisp recovery. The missive specifically points to large homebuilders, specified arsenic Lennar Corp. (NYSE:LEN), KB Home (NYSE:KBH), and D.R. Horton Inc. (NYSE:DHI), which person slashed prices to wide inventory, efficaciously resetting the marketplace for a measurement boom.

In a notable displacement for plus allocators, Wood advised skepticism toward Gold, tracked by SPDR Gold Trust (NYSE:GLD), which she views arsenic historically costly comparative to the M2 wealth supply. Instead, she doubled down connected Bitcoin (CRYPTO: BTC), citing its mathematical scarcity and “halving” mechanics.