Cathie Wood, who is a famous investor and founder of a company called Ark Invest, talked about why the market went down a lot on Monday. She said that a number called the VIX, which shows how scared people are of the market going down, went up a lot. This has only happened a few times in the past 40 years, during very scary times for the market.

Cathie Wood thinks that one of the reasons the market went down on Monday was because of something called the "yen carry trade." This is when people borrow money in a currency called yen, which has very low interest rates, and then use that money to buy things that make more money, like stocks. But when people started to worry about the market going down, they had to give back the money they borrowed and this caused more selling of stocks.

Cathie Wood also thinks that the Federal Reserve, which is like the boss of banks in the United States, should lower the interest rates they control. Right now, the interest rates are at their highest level in 22 years, but Cathie Wood thinks they should be closer to 1%. Lower interest rates can sometimes help the economy and make people less scared of the market going down. Read from source...

- VIX spike to 65 is not that high, given historical context and other market indicators
- Yen carry trade is not a major factor in the current market volatility, as it was in 1987
- Wood's comparison of 2008 and 2020 to the current situation is flawed, as the causes and effects of those events are different from the current situation
- Wood's suggestion that the Fed funds rate should be closer to 1% is unreasonable, as it ignores the current inflationary press

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