Cathie Wood says the exodus from expensive cities will keep a lid on inflation

Cathie Wood rose to prominence in 2020 thanks to winning tech bets. Brendan McDermid/Reuters
Cathie Wood stated that the exodus of expensive cities during COVID should help to lower inflation.

Wood believes that strong inflation is temporary and she has stated that commodities will cool next year.

Ark Invest, her company, will be moving to St. Petersburg in Florida in November from New York.

Cathie Wood, a superstar investor, has suggested that strong inflation may not last. People are fleeing costly cities like New York in search of cheaper ones.

Ark Invest, Wood's company, is moving from New York to St. Petersburg in Florida in November.

According to CNBC, she stated Tuesday that St. Petersburg's cost of living is between 20% and 40% lower than New York City. This includes rents.

"The exodus or the great migration is from high-rent areas to lower rents. She said that there will be a mixed effect that people don't consider when they think about inflation.

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Many people moved away from densely populated areas during the coronavirus pandemic. The ability to work from home meant that workers could not all live in the same area. However, many people desired more greenery and space.

ADP, a human resources company, found that 33% of US remote workers had made changes to their living arrangements during the pandemic. Another 29% of them were contemplating a change.

ADP stated that cities like New York, San Francisco and Los Angeles were experiencing "an exodus."

Ark Invest's CEO and founder, Wood, doesn't worry about inflation despite the fact that it has risen above 5% in the US over the past three months.

She argued that commodity prices should fall by 2022, and that innovation should be kept cheap for the long-term.

According to CNBC, Wood is moving Ark Invest from Austin to St. Petersburg as she views it as an innovation center. She stated that St. Pete is a potential destination for innovation and tech companies.