Cathie Wood: The deflationary forces driven by innovation are accumulating, and inflation may be lower than expected in the next 6 to 9 months

"Cathie Wood" posted on the X platform, stating that despite the rise in oil prices over the past three months, the yield curve remains flat, and the Federal Reserve has not monetized this energy shock. The bond market may begin to digest the deflationary effects brought about by AI and technology-driven productivity improvements. Currently, the costs of AI model training and inference have significantly decreased, productivity growth is accelerating, while unit labor costs remain subdued.

Although the current market narrative focuses on tariffs, deficits, and structurally high inflation, underlying signals indicate that deflationary forces related to innovation are accumulating. It is expected that inflation may be below expectations in the next 6 to 9 months, which will have profound effects on interest rates and long-term stocks.