Tuesday’s inflation data triggered a steep sell-off in equities and other financial assets.
What Happened
Ahead of the August inflation report, Ark Invest founder Cathie Wood made an argument for an impending deflation through a series of tweets.
To prove her point, she listed a number of commodities whose prices had significantly decreased from their pre-COVID levels. Lumber prices were down 60 percent, copper by 35 percent, oil by 35 percent, iron ore by 60 percent, DRAM by 46 percent, corn by 17 percent, Baltic freight rates by 79 percent, gold by 17 percent, and silver by 39 percent, she noted.
Tesla Inc. CEO Elon Musk chimed in with his thoughts on Wood’s tweet. “Exactly, this is neither subtle nor secret,” Musk tweeted….