Wall Street analysts predict U.S. economy will grow faster than expected

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Wall Street analysts predict U.S. economy will grow faster than expected

Cathie Wood, founder and CEO of ARK Investment Management LLC, speaks during Skybridge Capital SALT New York 2021 conference in New York City.

NEW YORK Reuters - Cathie Wood of ARK Investment reiterated her call that we are pushing for weaker economic activity in the United States.

Wood cited disappointing job growth in August and weakening consumer price index figures as signs that the United States economy will grow faster than many Wall Street analysts predicted at the beginning of the year. Her flagship $1.1 billion ARK Innovation Fund was the top-performing U.S. equity fund tracked by Morningstar last year.

We think we are moving towards the other side of the cycle after the reopening from the coronavirus pandemic led to widespread commodity shortages earlier this year and bolstered cyclical value stocks, she said in a webinar.

We do believe the market will start rotating back toward growth and innovation, she added.

Wood's portfolio, which is heavy in market stocks such as Tesla Inc., Teladoc Health Inc and Unity Software Inc., is up 5.5% for the year to date, well behind the nearly 19% gain on the benchmark S&P 500. The performance ranks in the lowest percentile among the 593 U.S. mid-cap growth funds, according to Morningstar.