2023 has been a whipsaw year for investor sentiment and even though equities markets have defied expectations, a recentfrom ARK Invest highlights reasons why the remainder of 2023 could present several economic challenges.
In the newsletter, ARK cites several reasons for their less than optimistic scenario for cryptocurrencies, including interest rates, gross domestic product estimates, unemployment and inflation. One point is that the U.S. Federal Reserve is implementing a restrictive monetary policy for the first time since 2009, as indicated by the"Natural Rate of Interest."The"Natural Rate of Interest" is a theoretical rate at which the economy neither expands or contracts.
The analysts also focused on the divergence between real GDP and GDI . According to the report, GDP and GDI should closely align, as income earned should equal the value of goods and services produced.