Deflationary Forces and Other Opportunities

bee

Cathie Wood, Mohamed El-Erian and Scott Minerd share their views on deflation, inequality and cybersecurity.

CW - "we’re in a period today like we’ve never been in. You have to go back to the telephone, electricity and automobile to see three major technologically enabled sources of innovation evolving at the same time. Today, we have five platforms: DNA sequencing, robotics, energy storage, artificial intelligence and blockchain technology — all of which are deflationary."

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ME- "The prescription is investing in human and physical infrastructure. It’s about enabling people to do more and to do better. It’s about providing people with transformational opportunities. It starts at a very early age, at pre-K, exposing bright minds to exciting education and opportunities. It continues throughout the middle school, high school, university, making elite universities more accessible to people who deserve to be there but may be held back because they come from the wrong zip code or because their parents have never had an education."

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hank

Yeah - I caught Wood on Bloomberg. Makes a certain amount of sense. Don’t rule it out if the stock market bubble were to pop. However, I’ll go with persistent inflation as the more likely future. Trip to area “Dollar” store yesterday. First time in a while. A small generic branded 9V battery (most smoke detectors) had increased from $1 to $3.50 over past 12-18 months. Similar 2X + increases in household cleaning supplies. Of course, isolated cases like this don’t a trend make. Just saying …

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Sven

Likely supply chain issue that inflates the pricing just like new cars.

CW’s funds are not doing well lately. Like to see another 10% decline before they become attractive.