'Donnamu Unni' Cathie Wood: "Look at the Massive Inventory, Inflation Will Ease Soon"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Cathie Wood, the Wall Street star manager known domestically as the 'Donnamu Unni,' and CEO of Ark Investment, predicted that inflation will soon ease, citing the massive inventory levels held by American companies.

On the 8th (local time), Wood CEO said in an interview with Bloomberg Television, "In my (manager) career, I have never seen inventory surge like this," adding, "This inventory level further highlights why we believe inflation will ease." The interview was hosted by Up.Partners, a venture capital firm investing in mobility startups personally supported by Walmart heirs and Wood CEO.

Many retailers that increased inventory last year amid surging consumer demand and supply chain bottlenecks are now struggling due to accumulated stock. Target, a major U.S. retailer, cited inventory surges as the reason for lowering its profit forecast twice within three weeks. Walmart also saw its stock price plunge 20% last month for the same reason.

Inflation and the Federal Reserve's interest rate hikes are pressuring Ark's innovation-themed funds. The flagship Ark Innovation ETF has fallen 50% this year.

The most representative company Ark is betting on is Tesla. Ark liquidated Tesla shares for at least four quarters and resumed buying after the stock price dropped 50%.

Wood also said that Tesla CEO Elon Musk should remain at Tesla to push forward autonomous driving. Regarding Musk, who is spending time on various projects including the Twitter acquisition, Wood CEO emphasized, "Overseeing the development of autonomous driving, which is predicted to generate $10 trillion by 2030, is more important."

This content was produced with the assistance of AI translation services.