Is the valuation peaking or an opportunity? See how ARK is betting on declining inflation and blockchain innovation

【BlockBeats】Many people are paying attention to one question: with the current market valuation approaching historical highs, is this a risk signal or an opportunity?

Cathie Wood, the renowned head of investment firm ARK, recently shared her views. She pointed out that data from the past few years clearly shows inflation is declining, but official reports indicate that inflation has stalled. This has left many investors confused. However, historically, during the periods around 1990 to 1997 and the early 2000s, the market experienced strong gains during phases of valuation multiple compression. Therefore, it’s necessary to prepare for valuation contraction.

So why remain optimistic? There are several main reasons. First, oil prices continue to decline. Second, housing prices are adjusting—KB Home has already cut prices by 7%, and other builders are following suit. Productivity has significantly improved, with unit labor costs dropping sharply, all of which contribute to multiple deflationary pressures.

The most critical factor is technological. Cathie Wood specifically emphasized that the focus is entirely on innovation driven by technology: robotics, energy storage, artificial intelligence (especially this), blockchain technology, and multi-omics sequencing applications in healthcare. Based on these factors, they believe inflation data is likely to be below market expectations, opening up new imaginative space for growth-seeking investors.