Wu said that ARK Invest founder Cathie Wood stated that the market may be misjudging the inflation situation. During a strong bull market, valuations could still be compressed, with current housing prices falling and unit labor costs turning negative, while AI, robotics, and technological advancements have obvious disinflationary effects. She expects that future inflation data may more often show "below expectations" surprises.
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Wu said that ARK Invest founder Cathie Wood stated that the market may be misjudging the inflation situation. During a strong bull market, valuations could still be compressed, with current housing prices falling and unit labor costs turning negative, while AI, robotics, and technological advancements have obvious disinflationary effects. She expects that future inflation data may more often show "below expectations" surprises.