Cathie Wood forecasts notable downturn in inflation to happen within 6 months

On Tuesday, ARK Invest’s CEO and founder Cathie Wood once again voiced her suggestion that deflation is highly likely to occur in the U.S. economy.

Wood, who is widely known for being bullish about cryptocurrencies and bitcoin in particular, has once more shared her opinion of the Fed’s aggressive pace of interest rate hiking by calling it a "monetary mistake". ARK Invest also forecasts a notable downturn in inflation that is possible to happen in 6 or 9 months, which, in its turn, may trigger further talks of clear price deflation.

The best performing U.S. equity fund of 2020, the ARK Innovation ETF managed by Wood, reached its top position during the ‘pandemic bubble’, although it has experienced a notable decline over the current year by almost 64%. The fall is linked to higher interest rates, which has had a negative impact on the unprofitable, speculative technology stocks in the fund’s portfolio.