In its 2026 outlook released on Jan. 15, ARK Invest CEO Cathie Wood declared the U.S. economy a “coiled spring” poised for a powerful rebound, forecasting a “golden age” for U.S. equities comparable to the boom of the 1980s.

Reaganomics On Steroids

Wood argues that the “rolling recession” of the past three years—triggered by the Federal Reserve's aggressive rate hikes—has wound the economy tight. With deregulation, tax cuts, and falling interest rates now converging, she predicts this tension will result in a surge of GDP growth and wealth creation.

Drawing parallels to her early career, Wood termed the current environment “Reaganomics on steroids.” She posits that the combination of fiscal stimulus and pro-business deregulation will unleash capital spending, particularly in artificial intelligence (AI) and robotics.

According to Wood, this backdrop creates a perfect storm for innovation-led growth, benefiting the ARK Innovation ETF (BATS:ARKK) and the broader S&P 500 tracking SPDR S&P 500 ETF Trust (NYSE:SPY).

She projects that real GDP growth could accelerate to 6-8%, ...