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A famous American CEO makes a stunning statement:



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Cathie Wood, CEO of Ark Invest, an asset and investment management company with a market value of more than $ 15 billion, said the United States is already in an economic recession and acknowledged that it underestimated the gravity and strength of resilience. of inflation, CNBC announces.

“We believe we are in a recession. We think there is a big problem with stocks… I have never seen such strong growth in my career. And it’s been 45 years since I’ve been playing in this market “, said the businessman.

The innovation-focused investor said inflation turned out to be higher than expected due to supply chain disruptions and geopolitical risks.

“We were wrong about one thing, in terms of inflation. No one imagined she could be so resilient. Supply chain […] I can’t believe that everything has been going on for more than two years, and the Russian invasion of Ukraine, of course, who could have anticipated such a thing. Inflation was a bigger problem, but it prepared us for deflation. “

Cathie Wood had a difficult time in 2022 as her flagship technology investment funds were among the biggest losers of the year due to rising interest rates. Its Ark Innovation ETF (ARKK) fund has fallen 52% since the beginning of the year to date, down 66% from its 52-week high.

However, Wood said investors are looking for diversification in a declining market and are confident in its funds. It appears that the ARKK recorded revenues of more than $ 180 million in June.

Pessimism on the stock market

Meanwhile, the Dow Jones index started on Tuesday on an optimistic note, as China announced a easing of its epidemiological measures. A move in this direction could improve the global economic outlook.

Indeed, the economic slowdown has often been cited as an important factor in investor considerations and has contributed to the market downturn.

In terms of economic releases, in Germany there was a monthly decrease in the consumer confidence index, with a value of -27.4 points, compared to -27.6 for the estimate and -26.2 for the previous period.

In the US, house prices rose by 21.2%, compared to 21% in the forecast and 21.1% in the previous period.

Technically, the Dow could find resistance around 32250. It could also find support around 31500 points.

Finally, it should be noted that the Investing.com technical summary for Dow Jones shows a “Strong Buy” signal per hour and “Neutral” per day.

The defense industry is on the rise

In this context, it is worth noting that since the beginning of the Russian invasion of Ukraine on February 24, actions in the defense industry have evolved well above market averages, as international stock markets have been severely affected by the effects of the war in Eastern Europe and the deterioration. economic prospects.

In Germany, a country that announced this year it would spend more than 2 percent of its annual gross domestic product (GDP) on defense, shares of Rheinmetall, a manufacturer of armored combat vehicles, rose 153 percent in 2022, according to Yahoo Finance. In Frankfurt, the DAX index has fallen 9.6% since the beginning of the year.

Founded more than 130 years ago, the Düsseldorf group now has a market value of 9.4 billion euros.

In the Amsterdam market, shares of BAE Systems, the largest arms manufacturer in Europe, rose 42%, down from an AEX index of 1.7%.

The shares of the French defense company Thales and the Italian industrial group Leonardo SpA appreciated by 51% and 68%, respectively. The CAC 40 indices in Paris and FTSE-MIB in Milan are down by 10.5% and 11.2% respectively in 2022, MarketWatch data show.