Cathie Wood sees inflation rising in the near term, but says ‘innovation-based deflation’ will keep rising costs in check in coming years

Cathie Wood sees inflation rising in the near term, but says ‘innovation-based deflation’ will keep rising costs in check in coming years

Cathie Wood sat down for Ark Invest's monthly mARKet update webinar on Tuesday and said she isn't concerned about inflation or rising interest rates. The Ark Invest CEO said she does see inflation, as measured by the Consumer Price Index (CPI), rising to the "3% to 4% range" over the next few months, but argued it won't last. Wood also said the Producer Price Index (PPI) will "move to the 6% to 8% range or even higher than that" in the webinar. Still, despite rising near-term inflation, Wood believes that "innovation-based deflation" will help keep rising costs at bay in the long term. "The technologies and the innovation around which we have centered all of our research and investing is rife with examples of the deflationary undertones that the global economy is facing… innovation-based deflation is very good deflation. It's associated with very strong growth," Wood said. The Ark Invest chief went on to give multiple examples of how advances in technology act as deflationary forces for the markets. Wood's first example was about DNA sequencing and the falling costs associated with innovation in that space. "For every cumulative doubling of the number of whole human genomes sequenced...costs associated with