Cathie Wood Predicts ‘Goldilocks’ Boom In 2026: 5% GDP With Deflation, Calls Bitcoin ‘Ultimate Diversifier’ For Portfolios
ARK Invest CEO Cathie Wood is calling for an economic “Goldilocks” scenario in 2026, forecasting real GDP growth surging toward 5%, accompanied by falling inflation—and potentially outright deflation—driven by an AI-led productivity boom.
‘Goldilocks’ Return
In a latest ARK Invest video, Wood argued that the U.S. economy is exiting a three-year “rolling recession” that quietly battered housing and manufacturing.
Citing recent data showing real GDP growth already topping 4% in late 2025, she expects this momentum to accelerate.
Contrary to consensus fears that rapid growth triggers inflation, Wood posits that the current surge is fueled by technology and productivity, which are inherently deflationary.
She highlighted declining oil prices, which could drop another 20-25%, and falling unit labor costs as key indicators that inflation will surprise to the downside, potentially turning negative.
“Growth does not cause inflation,” Wood stated. “Productivity-driven growth is associated with falling inflation. We think we are going back to the …
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