ARK Invest CEO Cathie Wood believes the US dollar is significantly stronger than investors realize and could appreciate substantially in coming years. According to the Federal Reserve’s broader index, the dollar has risen 36% since August 2008 and currently trades 44% above its long-term average, a measure Wood considers more relevant than the widely-tracked DXY index. She expects tax incentives to drive corporate reinvestment in US factories and data centers, with Fed Chair Kevin Warsh maintaining tight monetary discipline, drawing parallels to the early 1980s environment. A stronger dollar outlook could pressure gold, which has declined from its January peak of $5,602 to around $4,140, and test Bitcoin’s capacity for rapid gains, though the cryptocurrency showed unusual strength by gaining 6.14% in September alongside dollar appreciation.
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