With inflation running hot around the globe, many investors are looking to hedge against inflation. But is that the right goal?
On today’s episode of Forward Guidance, Jack Farley speaks to James Davolos, portfolio manager at the Horizon Kinetics Inflation Beneficiaries ETF ($INFL), a fund that which, as the name suggests, aims to invest in stocks that benefit from inflation. Davolos argues that inflation will increase the value of scalable, economically resilient business models with exposure to hard assets, and he shares several examples, ranging from gold royalty companies and financial exchanges to timber companies and agricultural processing firms.
Timestamps
00:00 Intro
00:34 What Companies Can Benefit From Inflation?
07:19 The Macroeconomic Causes of Inflation
11:11 Supply Chain Issues and Commodity Shortages
17:01 Energy and Gold Royalty Companies
22:43 Common Misconceptions About Inflation Hedges
26:23 Inflation’s Impact on Stock-to-Bond Correlations
37:01 Which Companies Can Pass Along Costs to Consumers?
38:12 What Sectors Are Most Vulnerable To Inflation?
41:24 Wage-Price Spirals
48:47 Emerging Markets and Inflation
50:10 Are Gold and Bitcoin Effective Inflation Hedges?
51:47 Other Inflation Hedges and The Importance of Valuation…(read more)
LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
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So much value in this talk and I'm only 15 minutes in – these guys are with it.
Great questions. Valuable info from James. Truly enjoyed watching this interview. Hope you have him back soon.
I really enjoy these macro conversations and that they are not always about Crypto (only)
This interview have provided us so many new and useful information . Many Thanks to everyone who contributed for the production of this high quality content interview. Cheers from Helsinki.
Amazing set of interviews Jack! Meanwhile try to convince Blockworks to spin off their crypto only videos (reason why I don't sub you)
I think this guy is full of SHIT. First off short end rates are going and need go DOWN not up. Ok sure Powell could try to raise rates but that will be a "policy error" or even invert the yield curve. There are pieces of truths to what he is saying like talking about malinvestment and capital and such but his central theses are incorrect. Also hedgeye has been long inflation for the last 18 months and its starting to change at this moment so getting long after the trend is on the tail end also doesn't make that much sense.