Cathie Wood and Walmart Aren’t Speaking the Same Deflation Language
For all the handwringing about the big-box retailer’s earnings call, deflation is normal in the goods sector — not some bogeyman to be feared.
Cathie Wood, the head of ARK Investment Management.
Photographer: Patrick T Fallon/AFP via Getty Images
The deflationistas have been working themselves into a tizzy since Walmart Inc. Chief Executive Officer Doug McMillon warned of a period of declining prices at the big-box retailer in the months to come. But as a purveyor of goods, McMillon is talking about something very different — and actually quite normal — from what Cathie Wood and other deflation alarmists seem to have in mind. In fact, a period of falling goods prices might be just what policymakers need to slay too-high inflation once and for all.
First, consider the context. Here’s what McMillon said in his quarterly conference call with analysts on Thursday: