The Clap
ARK Investment Management penned an open letter to the Fed expressing concerns about the risk of deflation.
The Deets
ARK explained that falling commodity prices and growing inventories are key indicators of deflation.
The firm called out the Fed for their unanimous decision to continue interest rate hikes, saying they’re too focused on two variables – inflation and unemployment – which are considered lagging indicators.
Why this Matters
ARK’s flagship fund tumbled more than 62% this year, as the economic situation remains unclear.
For context, the S&P 500 is down 24% YTD in comparison to ARK’s flagship fund.
