Investor and finance personality Cathie Wood has an optimistic outlook on the future of inflation rates. She explained why when chatting with Sara Eisen of CNBC's "Squawk on the Street".
"The Fed really wants to make sure that it has done its job," Wood said, "but I do believe the equity market [is] beginning to see to the other side."
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While Wood can't promise that this round of interest hikes are through, she sees a tipping point in the near future.
"The market is a discounting mechanism after all," she explains. Eisen pushes back a bit, pointing toward January's strong inflation rates. She expresses concerns shared by many in the market that the rise will continue -- to which Wood responds with her years of experience.
“In the early 80s, it was the same thing," Wood tells Eisen, "but those who bet on lower inflation and interest rates long term were the winners.”
Wood also responds to the idea that some see her ARK Innovation fund as a “barometer for what the Fed is doing”.
But the CEO of Ark Invest points to a major change in circumstances between inflation today and the dot-com burst of the 1990s.
The key, Wood says, is our understanding of emerging technologies like artificial intelligence.
"People are beginning to understand that the ground is shifting underneath us when it comes to innovation, unlike in the late 90s, investors[…] weren’t ready," she said.
