Cathie Wood Says 'Shock Therapy' From Trump's Trade Moves May End Prolonged Economic Slump

Ark Invest CEO Cathie Wood has offered a contrarian view on President Donald Trump‘s tariff policies, suggesting they could be the catalyst to end a three-year “rolling recession.”

What Happened: In her recent note, Wood explains that tariffs, which initially appeared as a damaging tax increase, might actually be a strategic “setup” for serious trade negotiations.

She believes Trump’s move to involve Treasury Secretary Scott Bessent signals a shift towards lower tariffs and non-tariff barriers, a scenario she argues wouldn’t have been possible without the initial “shock therapy.”

Wood also underlined Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk‘s support for resolving the long-standing trade barriers. Amid recent market volatility, Wood said that Ark Invest operates under the assumption that the administration aims for robust economic growth and a strong stock market leading up to the 2026 midterm elections.

Even before the tariff controversy, Wood anticipated strong growth in the latter half of 2025, predicting ...