Technology investor Cathie Wood has told Australian investors she believes deflation is a key risk on the horizon after rising interest rates and inflation have smashed her innovation-focused fund | clancyyeates
High-profile technology investor Cathie Wood has told Australian investors she believes deflation is a key risk on the horizon after rising interest rates and inflation have smashed her innovation-focused fund Ark Investment Management.
However, she argued the fund’s favoured type of stocks were now “way oversold,” and warned that “the bigger risk from here on is not inflation, it is deflation”. “We are seeing these massive retailers, the best supply chain managers in the world, with inventories up 30 to 40 to 70 per cent year over year, as their sales are up only 3 per cent,” Wood said.
“So I think this idea that these supply chain and raw material prices are going to end up in long-term pricing - I think that’s coming under serious question right now. And I think many people are looking now at the risks of not inflation going up, but inflation turning into deflation.“Wood said the fact that 10-year government bond yields were at about 3 per cent was a sign the bond market was not buying the narrative of 5, 6 or 8 per cent inflation.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Cathie Wood says ‘tide is turning’ after painful tech sell-offHigh-profile technology investor Cathie Wood said deflation, not inflation, is a much larger risk for investors and that the tide is turning.
Read more »
Cathie Wood, down 50pc, says inflation will ‘unravel’While investors have been gripped by the fear of inflation, the head of Ark Investment Management says “the greater risk by far is deflation”.
Read more »
Cathie Wood says ‘tide is turning’ after painful tech sell-offHigh-profile technology investor Cathie Wood said deflation, not inflation, is a much larger risk for investors and that the tide is turning.
Read more »
Cathie Wood, down 50pc, says inflation will ‘unravel’While investors have been gripped by the fear of inflation, the head of Ark Investment Management says “the greater risk by far is deflation”.
Read more »
‘The job is only half done’: Socceroos turn focus to Peru after crucial UAE winAustralia’s celebrations following victory over the United Arab Emirates have been tempered by an acceptance that the job is not yet complete
Read more »
Price spikes continue, with oil up again and OECD forecasting highest inflation since 1988Markets globally are in the red, as the world considers continuing inflation and the likelihood it will be tackled with rising interest rates.
Read more »