EXCLUSIVE: Cathie Wood Flips The Script, Warns Of Looming Deflation
Portfolio Pulse from AJ Fabino
Cathie Wood, founder of Ark Invest, warns of looming deflation in an interview with Benzinga. She expects interest rates to fall and highlights that many companies are showing little to no nominal growth. She uses Domino's Pizza, PepsiCo, and Coca-Cola as examples of companies experiencing negative unit growth due to price increases. Wood also mentions rising consumer delinquencies and the potential impact on the economy.
August 30, 2023 | 7:31 pm
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NEGATIVE IMPACT
Domino's Pizza experienced a loss of units and a 20% blow to its profit margin after trying to raise prices to fight inflation.
Domino's Pizza's failed attempt to combat inflation by raising prices resulted in a significant loss of units and a 20% decrease in profit margin. This could negatively impact the company's short-term stock performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Coca-Cola is experiencing negative unit growth due to near double-digit price increases.
Coca-Cola's strategy of combating inflation with near double-digit price increases has resulted in negative unit growth. This could negatively impact the company's short-term stock performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
PepsiCo is experiencing negative unit growth due to near double-digit price increases.
PepsiCo's strategy of combating inflation with near double-digit price increases has resulted in negative unit growth. This could negatively impact the company's short-term stock performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80