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 throughout the Skybridge Capital SALT New York 2021 convention in New York Metropolis, September 13, 2021.
Brendan McDermid | Reuters
Intently adopted innovation investor Cathie Wooden mentioned the migration development enjoying out in her personal firm is additional proof that traders ought to concern deflation as a substitute of inflation.
Wooden — founder, CEO and CIO of Ark Make investments —is transferring her funding agency’s headquarters to St. Petersburg, Florida on Nov. 1. The disruptive innovation investor mentioned that people and firms flocking to extra inexpensive areas of the nation ought to maintain inflation at bay.
“The price of residing [in St. Petersburg] is anyplace 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 nice migration is from the very high-rent areas of the world to a lot decrease rents. So there’s going to be a combination impact that many are usually not taking into consideration as they’re enthusiastic about inflation,” she added.
Wooden has been vocal about her idea 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 group.
“We imagine that St. Pete needs to develop into the subsequent Austin and entice tech corporations, entice innovation,” Wooden mentioned. “We’re seeing all ranges of the federal government work collectively this very cohesively, which could 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 Middle will happen throughout the first quarter of 2022 in St. Petersburg. This may embody 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 line 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 concentrate on innovation,” she added.
Wooden additionally added that St. Petersburg is “unbelievable” from a top quality of life perspective.