Mind Over Market

The big risk ahead over the next five years is deflation, not inflation, and it will benefit investments in innovation strategies, according to Cathie Wood, founder and chief executive officer of Ark Invest. Robert England Innovator companies, who share prices have tumbled 30-35% from their heights earlier this year, are likely to return 25-30% in each of the next five years from their current levels, Wood is predicting. “In terms of the recent behavior of value stocks, especially those we believe are in harm’s way, compared to the severe draw down of innovation stocks, I like the set up very much,” Wood said.   While the current situation is reminiscent of the runup in prices from 2006 to 2008, the bond market is signaling that may not be the case, Wood said.    Instead of 10-year Treasury yields rising sharply higher as it did during the 2008 financial crisis, the bond market “has settled down” following a sharply higher move in yields earlier in the year on inflation f...

A shortage of truck drivers and flat-bed trucks is delaying steel shipments at critical points in the supply chain and further driving up shipping costs and lead times, Fastmarkets has learned.   Fastmarkets AMM April 7, 2021 By Robert England In March, there were 84 loads that need to be shipped for every available truck, up from 22 loads for every truck in March 2020, according to DAT Freight & Analytics.   "Demand for the entire flat-bed market, of which steel is a huge piece, has been surging for six weeks and is approaching record highs," Avery Vise, vice president of trucking at FTR Transportation Intelligence, told Fastmarkets.   Steel products, such as beams and coils, are shipped via flat-bed trucks due to their heavy weight, as well as their size and shape, which require special handling precautions, according to R+L Global Logistics.   "It's terrible right now. A lot of shipping guys say it's the worst they've ever seen," a southern distri...