Cathie Wood Argues 5% Treasury Yields Do Not Threaten Stock Market Growth

ARK Invest CEO Cathie Wood contends that stocks can continue to appreciate despite 10-year Treasury yields exceeding 5%. Wood argues that higher rates indicate a market functioning without excessive Federal Reserve intervention, citing 2017 as a precedent where stocks performed well during rate hikes. Drawing on historical data, she suggests that the low-rate environment from 1981 to 2021 was an anomaly and that 5% to 6% yields are historically normal. She also notes that real-time inflation data, such as Truflation, suggests lower inflation than official PCE figures, supporting a shift toward higher stock allocations in balanced portfolios.