On episode XXII of “In the Know,” (November 5, 2021) ARK CEO/CIO, Cathie Wood, weighs in on inflation, oil, China, commodities, the velocity of money, and more. As always, she also discusses fiscal policy, monetary policy, the economy, market signals, economic indicators, innovation, and more.
While the market remains in a state of heightened volatility, ARK is here for you. Join ARK’s CEO & CIO, Cathie Wood, as she provides a short review during this period of uncertainty related to the coronavirus (COVID-19) pandemic. Stay Healthy. Stay Innovative.
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Inflation has been a hot topic of discussion lately, as economies around the world grapple with rising prices. To better understand this phenomenon, it is important to take a closer look at factors influencing inflation, such as oil prices, China’s economy, commodities, and the velocity of money. In this article, we will delve into these topics with insights from Cathie Wood, a renowned investor and the CEO of ARK Invest.
One of the key drivers of inflation is the price of oil. As an essential commodity, oil has a profound impact on various sectors of the economy, including transportation, manufacturing, and energy. When oil prices rise, it tends to lead to higher production costs and eventually higher prices for consumers. According to Wood, fluctuations in oil prices have a direct correlation with consumer price inflation. In recent times, the global oil market has experienced significant volatility due to geopolitical tensions, supply disruptions, and changes in demand patterns. These factors have played a crucial role in shaping current inflationary pressures.
Another crucial factor to consider is China’s role in the global economy. As the world’s second-largest economy, China’s economic policies, demand for commodities, and overall growth trajectory have a substantial impact on global inflation. China’s voracious appetite for commodities such as metals, agricultural products, and oil plays a significant role in commodity price dynamics. Wood highlights that any disruptions or shifts in China’s demand patterns can have far-reaching implications for global inflation rates. Therefore, closely monitoring China’s economic indicators and policy decisions is imperative for understanding inflationary trends.
Speaking of commodities, they have been at the center of attention lately due to their remarkable price hikes. From lumber and copper to corn and soybeans, prices have skyrocketed in recent months. Commodities serve as essential raw materials for industries, and cost increases get passed down the supply chain, ultimately impacting consumer prices. According to Wood, the surge in commodities prices is driven by a combination of factors, including supply chain disruptions, post-pandemic recovery, and climate-related issues. The growing demand for renewable energy solutions has further intensified the demand for specific commodities like lithium and rare earth metals. These price hikes in commodities pose challenges for businesses and consumers alike, contributing to inflationary pressures.
Beyond the specific factors mentioned above, the velocity of money is another critical concept to consider when examining inflation. The velocity of money represents the rate at which money circulates within an economy. A higher velocity of money implies that people are spending money quickly, leading to increased economic activity and potentially higher inflation. Conversely, a lower velocity of money indicates that people are holding onto money, which can result in slower economic growth and lower inflation. Wood suggests that in a world of abundant liquidity, understanding the velocity of money becomes crucial for projecting inflation and economic trends accurately.
To conclude, inflation is a complex phenomenon influenced by various factors. By analyzing the impact of oil prices, China’s economy, commodities, and the velocity of money, we gain a more comprehensive understanding of inflationary trends. Cathie Wood’s insights provide valuable perspectives for investors and policymakers to navigate the evolving economic landscape. Keeping an eye on these factors can help individuals and businesses make informed decisions in an increasingly inflationary environment.
looking back: was her analysis good?
Are Chinese stocks ($NIO, $BABA, $DIDI, etc…) about to enter a bear market?
oil at $115 a barrel
Dropping 6 trillions in two years in the economy may not kill deflationary trends ? What's that 1/3 or 1/4 of US GDP ?
I don't hear that all the time. Sure wish like ARK it didn't, nice ideas.
I agree Nixon used a bit too much teen slang talking in the Oval Office. Ehhh… I have a question, is this the new Oval Office ?
how do you like oil at 90$ now?
Or…the MSM refuses to talk about the topic, because they are carrying an ocean of water for 'The Dumpster Fire Administration'
Love the content but what the heck is going on the that back window???
This lady and Ark as a whole have "gimmick funds" written all over them. They will be relegated to the dust bin of history in due time. Bank on it.
Good point about auto industry.!
Your buying the wrong stocks in ARKF please clean up your act your loosing my hard earned money wake up!
Fracking was halted by Biden. Not cv. We are now begging OPEC for oil because Biden shutdown Keystone XL. That was a deal with Canada to get oil there while maintaining independence. You are wrong on the key points, and your inability to read through the whole BBB bill (all 2000+ pages of it) highlights how ignorant you either are or choose to be.
Thank-You-Very-Much ❣️
Thank you!
Housing is high because there is no innovation in housing. How long will it take for innovation to dramatically reduce the cost to live in a home.. and land prices are a direct correlation to population and wealth..
I wish Cathie Wood was president of the US
Imagine having a fed chair who want's to use that position to fight climate change.. I mean, the fanatics have entered the citadels of the west!
Is Tesla going to take advantage of WayRay holographic HUD? I can see it being in every luxury car.
Cathie is a thoughtful, rational, articulate person with a sharp mind. Always a pleasure listening to her.
Just to let you know im still chasing stratasys makerbot thingiverse 12 months on to resume business services. We there customers are unable to sell our invention ownerships. While they remain down we cant operate our businesses.
Do you know when they might resume business? 12 months down is not impressing my clients who are on my back a year now. I wish strat would sell out to someone who could resume business for the benifit of customers and comunity.
Oh yes, she is a true strategist.
Let's go Cathy! Appreciate these through the ups and downs. I'm mainly holding TSLA. It's got both growth and solid numbers,
why is ark down -13% and the market is up 30% in 2021? this is beyond terrible
Seems to me like you are changing your tune with inflation..
Thank you, Cathie
Always love listening to Cathie’s perspective on the market
We were energy independent under Trump.
Cathie and Ark Invest mark the end of boomer investing and dumb anti-innovation thinking, shorting anything that is 1% overpriced.
Cathy, you are very knowledgeable, but inflation is not just the difference of price increases and productivity gains.
Inflation is a monetary phenomenon (Milton Friedman). The more money added to the supply, the higher the inflation.
Price increases are a result of inflation. But inflation itself, using the original sense of the word, literally means the growth of the money supply.
Yes Cathy is quoting the late Milton Friedman, inflation is a tax!
Cathie woods is so brilliant AND HOT!
If only you know what the future says, you'll know that indeed cryptocurrency is the future, investing in it now will be the wisest thing to do. Hold!!! And you"'ll thank yourself
I love what you're doing for the investment community. I feel like I'm back in a college class every time I listen to you. Thanks!
We can watch all trades of Ark Invest. That's very cool! Is there also a way to watch the crypto trades of Ark Invest?
thx Cathie happy thanksgiving
I'm putting all my money into Tesla to me it's the safest spot to be even if it goes down you can't keep them down low that's a great company