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Cathie Wood: “The 1000x Opportunity EVEN Bigger Than Bitcoin” (Time To BUY)

Jamie Tree
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When History Books Are Written: The Rise and Fall of Inflation

In the future, when historians look back at this period, they will undoubtedly see a sharp rise in inflation. This inflationary period was caused by massive supply chain disruptions due to the COVID-19 pandemic and the ongoing war in Ukraine. While it may feel like inflation is slowly coming down, the charts will reveal a rapid decline that ultimately leads us into deflationary territory.

An editorial in the Wall Street Journal by Don Luskin highlights the potential blame that may be placed on the Federal Reserve (FED) for sending us into this deflationary period. Negative signs for guidance, such as Home Depot’s same-store sales being down three to five percent for the year, further support the notion of a potential deflationary trend.

However, amidst this economic landscape, Kathy Wood, the CEO of ARK Invest, has had a remarkable start to the year with her flagship fund, ARKK, up 30% year-to-date. This success can be attributed to the rise of artificial intelligence (AI) and innovations made by her basket of exponential technology stocks. But Kathy, being the contrarian investor she is, believes that something even bigger will fuel growth and adoption of her innovation-based platform – deflation.

While most economists and analysts predict high inflation to persist, Kathy expects deflation to come fast and hard. She argues that advancements in technology and innovation inherently lead to deflation. As AI and robotics replace human jobs, goods and services can be produced at scale and at much lower prices. These lower prices can then be passed on to consumers.

Why is Deflation Bullish for Exponential Technologies?

Deflation is bullish for exponential technologies like cryptocurrency and AI because it signals to the Federal Reserve and central banks that they can lower interest rates and increase money printing to stimulate economies. When this happens, assets further out on the risk curve, such as crypto and technology, tend to outperform other assets.

Kathy Wood breaks down her deflation thesis in a recent interview with Bloomberg. She explains that sharp falls in inflation numbers will prompt central banks to take action, which in turn benefits assets like cryptocurrency and technology. Lower interest rates and increased money supply create a favorable environment for these assets to thrive.

Kathy Wood’s Investment Moves

In the interview, Kathy Wood discusses her investment moves and the opportunities she sees in the AI space. She mentions her historical bullishness on Nvidia, a company that has seen significant growth due to its advancements in AI. However, she recently sold out of her position in Nvidia’s main fund and is now exploring other opportunities in the AI sector.

Wood emphasizes the importance of relative valuations and proprietary data and AI expertise when considering investments in the AI space. She mentions Nvidia’s valuation at 25 times sales and compares it to Tesla, which she believes is the biggest AI story with a valuation of six times earnings. Wood also highlights other AI plays, such as UiPath, which she sees as a beautiful AI play at six times sales.

While Wood acknowledges the risks associated with Nvidia, such as cyclical shortages and increasing competition, she remains optimistic about the company’s potential. She believes that Nvidia’s position in the AI space, coupled with its vision, distribution, and proprietary data, sets it apart from other players in the market.

Conclusion

Kathy Wood’s deflation thesis and investment moves in the AI space provide valuable insights into the potential future of the economy and technology. As advancements in AI and robotics continue to drive down costs and increase efficiency, deflation becomes a significant factor to consider. Wood’s belief in the bullishness of exponential technologies like crypto and AI in a deflationary environment highlights the potential opportunities for investors.

While there are risks and uncertainties, Wood’s track record and expertise in the AI sector make her insights worth considering. As history books are written, the rise and fall of inflation, along with the impact of deflation on exponential technologies, will undoubtedly be analyzed and studied.

Frequently Asked Questions

1. What is deflation?

Deflation refers to a sustained decrease in the general price level of goods and services in an economy. It is the opposite of inflation and can have significant impacts on various sectors and asset classes.

2. How does deflation affect the economy?

Deflation can have both positive and negative effects on the economy. On the positive side, it can lead to lower prices for consumers, increased purchasing power, and potentially stimulate economic growth. However, deflation can also lead to reduced business profits, increased debt burdens, and a decrease in consumer spending, which can hinder economic growth.

3. Why is deflation bullish for exponential technologies?

Deflation is bullish for exponential technologies like cryptocurrency and AI because it signals to central banks that they can lower interest rates and increase money supply to stimulate economies. This creates a favorable environment for these technologies to thrive, as they are often considered higher-risk assets.

4. What are the risks associated with investing in AI companies?

Investing in AI companies comes with its own set of risks. These risks include cyclical shortages, increasing competition, and the potential for technological advancements to disrupt existing players. It is important for investors to carefully evaluate the relative valuations, proprietary data, and AI expertise of companies before making investment decisions.

5. How can deflation impact the adoption of AI and robotics?

Deflation can accelerate the adoption of AI and robotics as advancements in these technologies lead to lower production costs. With lower costs, goods and services can be produced more efficiently, making them more accessible to consumers. This increased adoption can further drive down prices and contribute to the deflationary environment.

Tags 1000xaltcoinsbitcoinbitcoin newsbtcBuycrashcryptocrypto newsCryptocurrenciescryptocurrencyethEthereumfinanceInflationOpportunityRecessionstockstock marketTime
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39 Comments

  1. My marriage of 7yrs is about to crash. I am so much depressed right now and wish I never used the money I and my husband have been saving to buy our first family home. I used the money to trade in the market and everything is gone. Now he wants to divorce me. I love my husband s0 much and I don't want him to leave me.I feel like killing myself right now

  3. Well, i do have my reservations about this forecast. Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $650K portfolio is down by approximately 20%, any recommendations to scale up my ROI before retirement will be highly appreciated.

  6. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.

  11. More bullshit click bate titles from immoral desperate so called content creators. Toy add no value stop stealing content

  12. I'M NEW TO BTC AND I'VE BEEN MAKING LOSSES TRYING TO MAKE PROFIT MYSELF IN TRADING…I THOUGHT TRADING ON DEMO ACCOUNT IS JUST LIKE TRADING THE REAL MARKET… CAN ANYONE HELP ME OUT OR AT LEAST ADVICE ME ON WHAT TO DO?

  16. My portfolio has good companies, however it has been stalling this year. I’ve approximately $700k stagnant in my reserve that needs growth, any suggestions to grow my portfolio will be highly appreciated.

  20. This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!

  21. Sorry..government will regulate and destroy or just make it non profitable . U know this, there are no rules for the democrat party and their financial supporters.and

  22. I feel one Of the greatest challenges that we first timers face in the ma rket is that we end up losing all we have,making it difficult to find ourselves back to our feet. My biggest advice is to always seek the services of a professional just like I did when I ventured into it for the first time. Big thanks to Mrs Beley Haener. I now make huge profits by weekly through her services while still learning to stand on my own.

  23. The financial system has been artificially pumped for over a decade to ensure big pockets were lined; and now those same hands will make a fortune in the largest transfer of wealth in human history by shorting it on the way down. Inflation does have a roll, but that's to keep everyone panicked, and focused on their bills and expenses, rather than focus on the capital crimes of politicians and corporations,I'm still at a crossroads deciding if to liquidate my $338k stock portfolio, what’s the best way to take advantage of this bear market??

  25. Very great recommendations. Also, some of the non-tech that I think are positioned to go really up are Home Depot, Delta Airlines, Pool Corp, etc. It's summer anyway. I have set aside almost $200k for that. Having issues now with how to allocate capital, and to know if my projections are right based on technical observations.

  26. Knew about Nvidia since 2014 and kept buying when it was really cheap. First stock I bought actually! All because I saw some article on the Motley Fool saying they’re AI in cars was advancing a lot.

  30. The essential thing that everyone should
    be thinking about right now is investing
    in non-government sources of income.
    Especially in light of the current global
    economic crisis. It is still a wonderful
    moment to invest in gold, silver, digital
    money, and stocks.

  31. I began my investment journey at the age of 27, primarily through hard work and dedication. I am to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long-term financial prosperity.

  32. Speaking from experience in the crypto world i
    don't think as a trader it would be easy for you to
    predict the market currently, only an expert with
    several years of experience could help you grow your
    portfolio currently. After the last year crash i had to
    result to the help of an advisor.

  33. My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless

  34. Thank you. Crypto education is what the world needs the most right now. I don't think that buy and hold is a valid investment strategy anymore. Not too diluted and to a degree follows Mr. David Roland's trading ideas and signal tips for your portfolio growth and aggresiveness. He is the man who has not only taught me what the crypto currency would look like but a secret to uplift my finance. Buying crypto and waiting for the price to shoot up is not the best way to invest in the market, but buying and trading is. David Roland's trade signal does the heavy lifting, generating compensative returns for crypto traders and investors in the form of money and peace of mind. Time in the market vs. timing the market. If you keep that mentality as an investor, you will stay calm during the storm! Within some months I was making a lot more money and have continued on that same path with David Roland

  36. Nice content, trading come with a lot of benefits And I have just bought my first house through it. As a beginner I was scared of loosing my savings but I’m glad I took the bold step that is now favoring me.

  37. GOOD STUFF However when history booksare written it will be in a digital form and hopefully quantum computing will not destroy our history for future generations

  38. Your explanations are clear and straigh forward. I've watched several videos on trading, but they often lack practical advice. Can you recommend a reputable trading coach who can guide me through the process effectively?

  39. The future belongs to those who believe in the beauty of their dreams. Success is a state of mind. I start investing my cash in other to achieve all my dream with the help of Lucy Mary Liam. The difference Mrs Lucy Mary make in my life is second to none. It's definitely a life changing kindness. I really appreciate her effort in my life time.

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