Cathie Wood, Founder, CEO, and CIO of ARK Invest, shared her thoughts on deflationary signals. According to the hedge fund investor, the recent spike in credit default swaps validates the negative economic sentiments expressed by JP Morgan (JPM) CEO Jamie Dimon and Tesla (TSLA) CEO Elon Musk.
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Recently, Dimon warned the masses to “brace yourself” for an “economic hurricane” caused by the Ukraine war and the Federal Reserve’s actions.
Similarly, Musk sent a company-wide email asking to “pause all hiring worldwide” as he had a “super bad feeling” about the economy and needed to cut 10% of the workforce at Tesla.
As usual, Cathie’s tweet was flooded with critics quipping about her poor choice of stocks and the negative performance of the ARK range of funds.
Twitterati is even intrigued by her expectation of deflation, while several experts are projecting a recession due to the record high inflationary environment. A few even remarked about first dealing with peak inflation, then seeing if we get a recession, which might be followed by either deflation or stagflation.
Recently, Cathie has even pointed to a deflationary economy due to the excess inventories held by retailers.
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