Cathie Wooden says exodus from high-cost cities will push down inflation as Ark heads to St. Petersburg
Cathie Wooden, founder and CEO of ARK Funding Administration LLC, speaks in the course of the Skybridge Capital SALT New York 2021 convention in New York Metropolis, September 13, 2021.
Brendan McDermid | Reuters
Carefully adopted innovation investor Cathie Wooden mentioned the migration pattern enjoying out in her personal firm is additional proof that buyers ought to worry deflation as a substitute of inflation.
Wooden — founder, CEO and CIO of Ark Make investments —is shifting her funding agency’s headquarters to St. Petersburg, Florida on Nov. 1. The disruptive innovation investor mentioned that people and firms flocking to extra reasonably priced areas of the nation ought to preserve inflation at bay.
“The price of residing [in St. Petersburg] is wherever from 20% to 40% lower than in New York Metropolis and that features the rents,” Wooden mentioned throughout an Ark Make investments webinar Tuesday.
“The exodus, or the good migration is from the very high-rent areas of the world to a lot decrease rents. So there’s going to be a mixture impact that many aren’t taking into consideration as they’re desirous about inflation,” she added.
Wooden has been vocal about her principle on deflation. Whereas many market members are involved about rising costs, the Ark Make investments founder expects deflation amid a breakdown in commodity costs, gridlock on tax coverage in Washington and innovation traits taking off.
The new-handed investor can also be attempting to place St. Petersburg, which is west of Tampa, on the map for the innovation neighborhood.
“We consider that St. Pete desires to change into the subsequent Austin and appeal to tech firms, appeal to innovation,” Wooden mentioned. “We’re seeing all ranges of the federal government work collectively this very cohesively, which may be very refreshing. They’re very excited that Ark is hereto assist with that course of.”
The corporate also announced last week the groundbreaking of the Ark Innovation Heart will happen in the course of the first quarter of 2022 in St. Petersburg. This may embody a facility to assist appeal to and retain prime expertise by supporting entrepreneurs and tech start-ups in St. Petersburg and the Tampa Bay area, in accordance with Ark’s information launch.
“I feel this area of the world goes to burgeon, this area of our nation goes to burgeon due to its give attention to innovation,” she added.
Wooden additionally added that St. Petersburg is “unimaginable” from a high quality of life perspective.