Cathie Wood: Inflation Data Likely to Be Below Market Expectations in the Next 6 to 9 Months

On May 9, Cathie Wood, founder, CEO, and Chief Investment Officer of ARK Invest, stated that a noteworthy signal in the current market data is that despite a significant rise in oil prices over the past three months, the yield curve continues to flatten. Historically, in traditional economic cycles, if the Federal Reserve adopts monetary easing measures in response to energy shocks, the yield curve should steepen rather than flatten. However, this round of energy shocks has not received monetary easing support from the Federal Reserve. ARK Invest believes that the bond market may have begun to price in a more profound force: the deflationary effect brought about by increased productivity across society enabled by artificial intelligence and technology. ARK Invest anticipates that inflation data in the next 6 to 9 months is likely to be below market expectations. If this assessment holds true, it will have a significant impact on interest rate trends and long-duration stocks. (Dongxin News Agency)