Cathie Wood says exodus from high-cost cities will push down inflation as Ark heads to St. Petersburg

Closely adopted innovation investor Cathie Wood stated the migration development taking part in out in her personal firm is additional proof that buyers ought to worry deflation as an alternative of inflation.

Wood — founder, CEO and CIO of Ark Invest —is transferring her funding agency's headquarters to St. Petersburg, Florida on Nov. 1. The disruptive innovation investor stated that people and firms flocking to extra inexpensive areas of the nation ought to maintain inflation at bay.

"The cost of living [in St. Petersburg] is anywhere from 20% to 40% less than in New York City and that includes the rents," Wood stated throughout an Ark Invest webinar Tuesday.

"The exodus, or the great migration is from the very high-rent areas of the world to much lower rents. So there's going to be a mix effect that many are not taking into account as they're thinking about inflation," she added.

Wood has been vocal about her idea on deflation. While many market contributors are involved about rising costs, the Ark Invest founder expects deflation amid a breakdown in commodity costs, gridlock on tax coverage in Washington and innovation tendencies taking off.

Cathie Wood's Ark Invest leaves New York City for FloridaSquawk Box

The hot-handed investor can be attempting to put St. Petersburg, which is west of Tampa, on the map for the innovation neighborhood.

"We believe that St. Pete wants to become the next Austin and attract tech companies, attract innovation," Wood stated. "We're seeing all levels of the government work together this very cohesively, which is very refreshing. They are very excited that Ark is hereto help with that process."

The firm additionally introduced final week the groundbreaking of the Ark Innovation Center will happen in the course of the first quarter of 2022 in St. Petersburg. This will embrace a facility to assist entice and retain high expertise by supporting entrepreneurs and tech start-ups in St. Petersburg and the Tampa Bay area, in accordance to Ark's information launch.

"I think this region of the world is going to burgeon, this region of our country is going to burgeon because of its focus on innovation," she added.

Wood additionally added that St. Petersburg is "incredible" from a top quality of life perspective.

based mostly on web site supplies www.cnbc.com

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