(TheStreet) - It’s no secret that investors are worried about runaway prices for goods and services, with the stock market on track to post its worst weekly run since mid-June and also nearing its worst performance since the Covid-19 pandemic rolled across the U.S. more than two years ago.
Wood has been warning about deflation since last year on the belief that disruptive innovation will push down the price of obsolete goods and artificial intelligence will help reduce production costs. She is now doubling down on her call as a number of leading indicators she watches are pointing to deflationary forces instead of inflationary.
Wood, however, said falling commodity and freight charges, as well as stable gold prices suggest the supply chain issues that pushed inflation to 40-year highs are moderating. At the same time, she said the U.S. economy is likely in recession, which will bring down price pressures.