September 13, 2022
(Bloomberg) - Ark Investment Management’s Cathie Wood is warning about the risks of US auto debt if there’s a drop in prices.
The prevalence of ride-hailing services mean that people wouldn’t prioritize paying car loans as they did during the 2008-2009 financial crisis, she said in a Twitter post.
Her comments follow a series of tweets from last week saying the Federal Reserve is “making a mistake” with its interest rate increases, and turning inflation into deflation.
The used-car market is showing signs of softening after prices skyrocketed during the pandemic. An index by Manheim Auctions, the world’s largest reseller of used vehicles, showed prices fell 4% last month.
By Catherine Bosley
