Cathie Wood Harps On Deflation Risk After Fed's Powell Tones Down Inflation Commentary — Says These Investment Bets Will Be 'Biggest Beneficiaries'
Portfolio Pulse from Shanthi Rexaline
Fund manager Cathie Wood has highlighted a deflationary trend, stating that commodity prices are at the same level as they were 40 years ago. She believes that long-term stocks and bonds are the best investments in such an environment. This comes after Federal Reserve Chairman Jerome Powell stated that progress has been made on inflation. Wood's view is in contrast to increasing short bets against large-cap tech stocks. The iShares TIPS Bond ETF (NYSE:TIP) ended Wednesday’s session up 0.87% at $103.24.
November 02, 2023 | 8:13 am
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The iShares TIPS Bond ETF (NYSE:TIP) ended Wednesday’s session up 0.87% at $103.24. Cathie Wood's comments on deflation could potentially increase interest in this ETF.
Cathie Wood's comments on deflation and her belief in long-term bonds as a good investment could potentially increase interest in the iShares TIPS Bond ETF. This ETF tracks the investment results of an index composed of inflation-protected U.S. Treasury bonds, making it a potential beneficiary of a deflationary environment.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70