August 9, Cathie Wood: Bitcoin and stablecoins are likely to be the two biggest beneficiaries of the smart-agent business transformation. “Wood Lady” Cathie Wood believes that the latest employment report may look concerning on the surface, but the reality is not as bad as it seems. What truly matters is the economic shift behind the employment data. Currently, the U.S. federal budget deficit as a share of GDP is 5.6%. She believes this level is similar to the early 1980s under Reaganomics; if productivity and technology adoption continue to accelerate in line with ARK’s expectations, the ratio could come close to 5% by year-end. The bigger risk in the future may not be inflation, but deflation—especially for companies that fail to adopt AI and productivity tools.

In oil, an oversupply is taking shape. After the UAE exited OPEC in May, its production rose to a historical high. Cathie Wood believes oil prices could fall significantly and views this as a deflationary driver for most regions of the world. At the same time, capital expenditures have already broken out of the range seen over the past 30 years. She believes market concerns about an AI bubble are exaggerated, and that the market is still in the early stage of a technological revolution.

In crypto assets, Cathie Wood says that Bitcoin’s performance relative to gold is stabilizing again, and she believes that both Bitcoin and stablecoins could be the two primary beneficiaries of the smart-agent business transformation.