ARKK - Deflation On The Horizon? Cathie Wood Points At Falling Commodity Prices To Hint At Slowing Economy | Benzinga
Cathie Wood, the CEO of ARK Invest, raised concerns about a potential deflationary cycle, citing a significant drop in commodity prices.
What Happened: Wood, in her letter to investors on Wednesday, pointed out the surprising downtrend in commodity prices since 2008. She highlighted that the Bloomberg Commodity Price Index is currently at the same level as in 1984, indicating a potential deflationary “Kondratieff wave.”
Kondratiev waves are long economic cycles, lasting 40-60 years, marked by alternating periods of high and slow growth, linked to the technology life cycle.
Wood also discussed the yield curve, which has been flattening for over a decade and inverted for more than two years. This, she suggested, further supports the notion of a deflationary Kondratieff wave.
“Characterized by decades-long waves of inflation and deflation, the concept of a wave continuing today might be associated not only with technologically enabled innovation but also with ...