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"All hell broke loose from a monetary point of view." Cathie Wood takes the interest rate picture back to 1790 and makes the case that today's 10-year Treasury yield sits close to the midpoint of American history. In our opinion, the real anomaly was not 2026 but the 1970s, 80s, and 90s.
In this month's "In The Know," ARK Chief Executive Officer (CEO) and Chief Investment Officer (CIO) Cathie Wood responds to a Bill Ackman tweet on interest costs and inflation, then walks through the charts behind her recent letter. Most people think they know what is pushing rates higher. Her read is different, and the chart she uses to make the case goes back to 1790. She also covers a 99.99% annual decline in artificial intelligence (AI) inference costs and what that does to prices across the economy, gold peaking right as President Trump named Kevin Warsh as Federal Reserve (Fed) Chairman, and a money growth rate near 5.7% that still is not showing up in inflation.
Plus 90% of the world's data center financing landing in the United States, and what the credit default swap chart she saved for last says about hyperscalers.
Key Points:
00:00:00 Answering Bill Ackman On Interest Costs
00:03:29 Rates Since 1790: The Anomaly Isn't Today
00:09:27 90% Of The World's Data Center Financing
00:13:41 The Dollar Chart Almost Nobody Looks At
00:16:05 Gold Peaked The Day Warsh Was Named
00:16:50 Oil At $30, Without A Crisis
00:20:36 OpenAI: $20 Billion To $70 Billion In A Year
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