Fund manager Cathie Wood said a deflationary trend is playing out, in line with her past assertions, and highlighted long-term stocks and bonds as best bets in such an environment.
What Happened: Commodity prices today are where they were 40 years ago and were resuming the deflationary trend that was in place since 2008, Wood said in a post on X, formerly Twitter.
To make her case, she shared the chart of Bloomberg’s diversified commodity price index. She clarified the chart used nominal values and was not inflation-adjusted.
The fund manager noted that many investors are betting “higher for longer” on inflation and interest rates, as they focus on years of zero percent interest rates. In the process, they are betting against long-duration fixed income and equity ...