Another Great Depression On Its Way

‘The set-up will be more like 1929’: Cathie Wood just warned of another ‘Great Depression’ if the Fed keeps ignoring these signals — here are 3 safe haven sectors for proven protection

The U.S. Federal Reserve has been raising interest rates aggressively in an effort to bring inflation under control. According to Ark Invest’s Cathie Wood, this could have serious consequences.

In a series of tweets on Saturday, Wood compares the current situation to events that led up to the Great Depression.

“The Fed raised rates in 1929 to squelch financial speculation and then, in 1930, Congress passed Smoot-Hawley, putting 50%+ tariffs on more than 20,000 goods and pushing the global economy into the Great Depression,” Wood says. “If the Fed does not pivot, the set-up will be more like 1929.”

The super investor points out that the U.S. central bank is “ignoring deflationary signals.” At the same time, she warns that the Chips Act “could harm trade perhaps more than we understand.”

Of course, not all assets are created equal. Some — like the three listed below — might be able to perform well even if the Fed doesn’t soften its hawkish stance.

Real estate
It may seem counterintuitive to have real estate on this list. When the Fed raises its benchmark interest rates, mortgage rates tend to go up as well, so shouldn’t that be bad for the real estate market?  READ MORE...