BlockBeats News: On January 18, Cathie Wood, founder of ARK Invest, stated, "Experience from the past few years has shown us that the trend of declining inflation is very clear. However, inflation appears to have stalled in the official data reports. Many people are wondering why current market valuations are approaching historical highs, which seems to resemble a prelude to a correction. Looking back at history, during the 1990s up until around 1997, and in the early 2000s, the market still experienced strong growth even as valuation multiples declined. We must assume that valuations will be compressed, and we have incorporated this assumption into our bottom-up analysis of every company."
Nevertheless, we remain quite optimistic about the inflation outlook, primarily due to the following reasons: first, oil prices, and second, housing prices. You can see that homebuilder KB Home has already reduced housing prices by 7%, and other companies are following suit. In addition, productivity has improved significantly, and unit labor costs are declining sharply. Therefore, there are currently multiple deflationary pressures. The last factor I would like to mention is technology.
We are fully focused on innovation driven by technology, covering robotics, energy storage, artificial intelligence (especially so), blockchain technology, and the field of multi-omics sequencing in healthcare. We believe that inflation data is likely to come in below market expectations.