Cathie Wood: Inventory Issues Suggest Inflation Will Ebb

The video discusses the rise of the Innovation ETF by 2.7% and questions the current inflation narrative. It highlights the prolonged supply chain issues and geopolitical tensions like Russia's invasion of Ukraine as factors influencing inflation. The speaker argues that deflation poses a greater risk than inflation, both cyclically and over the long term. The discussion also covers how technological advancements, such as electric vehicles and autonomous mobility, contribute to deflationary trends in the economy by converging on deflationary cost curves.

What factors contributed to the rise of the Innovation ETF by 2.7%?

• Decrease in interest rates

• Prolonged supply chain issues and geopolitical events

• Increased consumer spending

• Improved corporate earnings

Why do some believe deflation is a greater risk than inflation?

• Due to the impact of current inventory issues

• Because deflation can lead to decreased consumer spending

• Due to the potential for increased unemployment

• Because of rising commodity prices

How do inventory issues relate to deflationary concerns?

• They result in higher interest rates

• They cause a rise in consumer prices

• They highlight the cyclical nature of deflation

• They lead to increased production costs

What role do electric vehicles and autonomous mobility play in the economy?

• They reduce technological advancements

• They stabilize the job market

• They contribute to deflationary trends

• They increase inflationary pressures

Why are converging technologies considered deflationary?

• They follow deflationary cost curves

• They lead to higher consumer demand

• They increase production costs

• They result in increased government spending