Ark Invest CEO Cathie Wood has drawn comparisons between the current economic climate and the early Reagan administration, noting similarities in historical context and policy implementation. She highlights that during President Ronald Reagan’s era, Fed Chairman Paul Volcker significantly increased the federal funds rate from 10% to 20%, leading to recessions starting in 1983. However, Wood argues that despite these challenges, the policies enacted at the time spurred one of the most prosperous periods for both stock and bond markets, lasting for roughly fifteen to twenty years. She believes a similar outcome could occur under President Trump’s policies given the current significantly lower interest rates.