Bill Ackman’s post about inflation took me back to the late 1970s, when similar concerns were everywhere. What followed was stronger growth and falling inflation, helped by the PC and software revolution. We believe today’s innovation platforms could have an even greater impact. Most people think our forecast for high single-digit real GDP growth is crazy. I understand why. We’ve spent our lives in a roughly 3% global growth world. But look at AI. At a fixed level of performance, inference costs are falling 99.99% a year. Yet OpenAI’s annualized revenue run rate has jumped from $20 billion to $70 billion. As prices fall, demand explodes. We’ve never seen anything like this kind of growth! We believe those cost declines will seep into the broader economy, lifting productivity and profitability while pushing inflation much lower than most investors expect. That’s “good deflation.” Interest rates could rise in that environment because real growth is stronger. In this month's In The Know, I respond to Bill’s concerns, explain the research behind our outlook, and examine what credit markets are telling us about the AI investment boom. Watch it here: https://youtu.be/4Rir6HADnT8?si=JHQvoepe7PmDxCqG