In a recent interview with The Wall Street Journal, Cathie Wood, CEO of ARK Invest, discussed her perspective on the economic outlook for 2024, emphasizing the potential for deflation rather than inflation. (fortune.com)
Deflationary Indicators
Wood highlighted several economic indicators suggesting a shift toward deflation:
Commodity Prices: The Dow Jones Commodity Index has declined by over 7% in the past year and 21% since its peak in March 2022. (fortune.com)
Consumer Prices: Recent data shows a decrease in both new and used car prices, as well as a 13.2% year-over-year drop in airfare prices. (fortune.com)
Federal Reserve’s Role
Wood expressed concern that the Federal Reserve’s aggressive interest rate hikes, intended to combat inflation, may have been excessive. She suggested that these measures could inadvertently lead to deflationary pressures in the economy. (fortune.com)
Implications for Investors
For investors, Wood’s analysis underscores the importance of monitoring deflationary trends and adjusting investment strategies accordingly. She noted that technology, often associated with deflationary forces, could present opportunities in a deflationary environment. (fortune.com)
In summary, Cathie Wood’s insights suggest that deflationary trends are emerging, influenced by factors such as declining commodity prices and the Federal Reserve’s monetary policies. Investors should remain vigilant and consider these developments when making investment decisions.
Real estate is one of them Its a huge bubble and politics backed by the media keeps it up from collapsing already for 1.5 years! Regarding cars …they never had so many repo trucks on the street as they do now. Those cars have to be resold. The feds are full of sheat… they mismanaged the country already for good 30+ years.
Companies took advantage of the supply shock to jack up prices and gouge consumers. The helicopter money made this so much worse. The excess profits sitting in the accounts of manufacturers is slowing the price corrections that might otherwise happen automatically because companies don’t need the volume if the profits are high enough. Deflation will hit simultaneously with the coming recession. This will be a globally synchronized recession and will likely cause civil unrest.
Probably s temix with the question married to a clip of her voice
Real estate is one of them Its a huge bubble and politics backed by the media keeps it up from collapsing already for 1.5 years! Regarding cars …they never had so many repo trucks on the street as they do now. Those cars have to be resold. The feds are full of sheat… they mismanaged the country already for good 30+ years.
Full video?
Companies took advantage of the supply shock to jack up prices and gouge consumers. The helicopter money made this so much worse. The excess profits sitting in the accounts of manufacturers is slowing the price corrections that might otherwise happen automatically because companies don’t need the volume if the profits are high enough. Deflation will hit simultaneously with the coming recession. This will be a globally synchronized recession and will likely cause civil unrest.
I’ll drown myself before listening to wood