Cathie Wood, founder of global asset management company ARK Invest, says she sees a scenario where central banks could start accumulating Bitcoin and other crypto assets.
In a new episode of The Breakdown podcast, the superstar hedge fund manager says her firm believes that deflation, not inflation, will hit global markets as consumer demand shifts from commodities to services.
“We are thinking the much higher probability is deflation. I know most people think that’s crazy given what’s going on, but we have seen a crack in some commodity prices already, lumber an important one. What we think has happened here is consumers have spent the last year spending their money on the only things they could and those are goods, durables and non-durable goods.
Businesses were behind the curve even before the coronavirus because of the inverted yield curve. They were afraid of a recession… So they were fearful and positioned conservatively. Consumers took off buying goods and now