Cathie Wood

In 2022, price deflation rather than inflation will be the bigger surprise to markets.

“my conviction is growing that the bigger surprise to the markets will be price deflation – both cyclical and secular”

Said on

18 December 2021 · ARK market commentary letter "Innovation Stocks Are Not in A Bubble". The same sentence says higher-multiple stocks could turn around "during the next year", which sets the implied window.

Source

Innovation Stocks Are Not in A Bubble: We Believe They Are in Deep Value Territory · ARK Invest

Should come true

2022

How sure they sounded

my conviction is growing

Categories

Economy

Importance

3 of 5 · A call on the direction of US inflation, which drives interest rates and markets.

Outcome

Inaccurate

2022 brought the opposite surprise. US CPI inflation peaked at 9.1% year over year in June 2022, a 40-year high. Wood admitted in June 2022 that "We were wrong on one thing and that was inflation being as sustained as it has been."

Evidence:

• https://www.bls.gov/news.release/archives/cpi_07132022.htm
• https://www.cnbc.com/2022/06/28/ark-invests-cathie-wood-says-the-us-is-already-in-a-recession.html