Cathie Wood, the CEO of ARK Invest, has predicted a potential shift in the equity market, favoring small-cap stocks over large-cap tech companies. This forecast is based on the current “restrictive” monetary policy of the Federal Reserve, as outlined in a recent investor letter on Wednesday. What Happened: Wood highlighted the potential impact of the Fed’s current policy, which is aimed at curbing inflation following the COVID-19 crisis. She pointed out that previous instances of market concentration, such as in 1973 and 2000, were followed by significant market downturns. In contrast, periods…
