{"id":8149,"date":"2022-06-09T19:13:06","date_gmt":"2022-06-10T00:13:06","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=8149"},"modified":"2022-06-19T14:48:33","modified_gmt":"2022-06-19T19:48:33","slug":"wood-sees-huge-inventories-as-evidence-inflation-will-ebb","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=8149","title":{"rendered":"Wood Sees Huge Inventories as Evidence Inflation Will Ebb"},"content":{"rendered":"\n<ul><li>\u2018Cyclical reason\u2019 that Ark thinks \u2018inflation will unravel\u2019<\/li><li>Said Musk should stay at Tesla for autonomous driving push<\/li><\/ul>\n\n\n\n<p>Cathie Wood says the massive inventories now held by US companies suggest that inflation will die down.&nbsp;<\/p>\n\n\n\n<p>\u201cI\u2019ve never seen inventory surges like this in my career and I\u2019ve been around for a long time,\u201d the head of Ark Investment Management said in an interview with Bloomberg Television Wednesday. \u201cThis inventory issue highlights the cyclical reason we\u2019ve been saying we think inflation will unravel.\u201d<\/p>\n\n\n\n<p>Major retailers that amassed stockpiles last year amid soaring consumer demand and supply chain bottlenecks are now struggling with bloated inventories. On Tuesday, Target Corp.&nbsp;<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-07\/target-cuts-profit-outlook-again-in-push-to-ease-inventory-pain\" target=\"_blank\" rel=\"noreferrer noopener\">cut<\/a>&nbsp;its profit outlook for the second time in three weeks on an inventory surge.<\/p>\n\n\n\n<p>Inflation and the start of Federal Reserve rate hikes have put Ark\u2019s innovation-themed funds under pressure. The flagship Ark Innovation ETF (ticker\u00a0<a href=\"https:\/\/www.bloomberg.com\/quote\/ARKK:US\">ARKK<\/a>) has fallen 50% this year. While investors have been gripped by the fear of inflation, \u201cthe greater risk by far is deflation,\u201d Wood said.<\/p>\n\n\n\n<p>The interview took place at UP.Summit, a\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-06\/cathie-wood-backed-vc-group-explores-mobility-with-walmart-heirs\" target=\"_blank\">conference<\/a>\u00a0on the future of mobility hosted by Walmart Inc. heirs and Up.Partners, a venture capital firm investing in mobility startups that Wood personally backs.<\/p>\n\n\n\n<p>One of Ark\u2019s most famous bets has been on&nbsp;<a href=\"https:\/\/www.bloomberg.com\/quote\/TSLA:US\">Tesla Inc.<\/a>&nbsp;After Ark trimmed its Tesla holdings for at least four quarters in a row, it\u2019s been&nbsp;<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-08\/cathie-wood-is-back-buying-tesla-after-stock-s-nearly-50-plunge\" target=\"_blank\" rel=\"noreferrer noopener\">buying<\/a>&nbsp;the electric carmaker again after the stock sunk nearly 50%.<\/p>\n\n\n\n<p>As Chief Executive Officer Elon Musk divides his time among several projects, including his pending Twitter Inc. deal, Wood said it\u2019s important that he stay at Tesla to oversee development of autonomous driving &#8212; a mode of transportation that her firm predicts will generate $10 trillion in revenue by 2030.<\/p>\n\n\n\n<p>\u201cHe doesn\u2019t need to stick around for the EV side of it, he needs to stick around for the autonomous side,\u201d she said.&nbsp;<\/p>\n\n\n\n<p>Wood also hinted at a new \u201ccrossover fund\u201d she\u2019s planning, but said she can\u2019t say more due to regulations.<\/p>\n\n\n\n<p>Addressing a separate conference in Sydney on Thursday, Wood said investors are under appreciating how&nbsp;<a href=\"https:\/\/www.bloomberg.com\/quote\/ZM:US\">Zoom Video Communications Inc.<\/a>&nbsp;will dominate the cloud, the Australian Financial Review&nbsp;<a href=\"https:\/\/www.afr.com\/markets\/equity-markets\/cathie-wood-says-tide-is-turning-after-painful-tech-sell-off-20220609-p5asgi\" target=\"_blank\" rel=\"noreferrer noopener\">reported<\/a>. The stock is down 37% this year.&nbsp;<\/p>\n\n\n\n<p>\u201cFor institutional investors to be dismissing Zoom when more than half of its revenues are now enterprise is just telling me they\u2019re not doing their research,\u201d she said. \u201cThey should know better.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u2018Cyclical reason\u2019 that Ark thinks \u2018inflation will unravel\u2019 Said Musk should stay at Tesla for autonomous driving push Cathie Wood<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[254,3421,3422],"tags":[888,3425],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/8149"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8149"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/8149\/revisions"}],"predecessor-version":[{"id":8150,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/8149\/revisions\/8150"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8149"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}