(Bloomberg) -- Ark Investment Management’s Cathie Wood says “exploding” inventories at major retailers like Walmart Inc. and Target Corp. paired with declining US consumer sentiment portend slower inflation on the horizon.

The money manager was responding on Thursday to a tweet quoting world’s richest man Elon Musk saying the recent inflation surge was due to government pandemic stimulus, even as money velocity held constant. 

Wood argued consumers are “rebelling against their loss in purchasing power” as they reduce spending. She added that the supply chain bottlenecks connected with rising inflation may have been caused by excessive ordering from companies. 

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