Q4 2023 Fund Webinar

Broad-based global equity indexes[1] rallied in the fourth quarter, buoyed by growing consensus that the Federal Reserve (Fed) will lower rates in 2024. Now that consensus expectations have veered toward a soft landing, ARK continues to expect that a loss of pricing power will force corporations into employment cutbacks that will cause a harder-than-expected landing. Indeed, the US economy seems to have been in a rolling recession, depressing sectors like housing, autos, and commercial real estate while inventories continue to build. In response, the potential growth in ARK’s Five Innovation Platforms[2] could play an outsized role in pulling the economy out of recession, salvaging corporate margins as inflation gives way to deflation in many sectors.