May 14, 2021

James Davolos: The Best Businesses To Own During Inflation

56 minutes

Let’s talk about the 4.2% elephant in the room, that’s right! This week is all about inflation and luckily we had the privilege to talk to James Davolos, Portfolio Manager at Horizon Kinetics, to help us understand inflation at a deep level.

We talked about what is the CPI and how it is measured, the effect that inflation has on risk assets, what is duration on risk assets, how not to hedge against inflation, but most importantly he shared how we can effectively hedge against inflation by investing in companies that are Direct Beneficiaries, Indirect Beneficiaries or Opportunistic Beneficiaries of Inflation, which are exactly the types of companies that you can find on Horizon Kinetics’ Inflation Beneficiary ETF ($INFL).

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[0:00] Who is James Davolos?

[3:44] What is the CPI and How is it Measured?

[8:15] Fiat Currencies Always Go to Zero

[10:30] Modern Monetary Theory

[14:20] What Inflation Means to Risk Assets

[15:00] What is Duration on a Risk Assets?

[20:00] The Inflationary Beneficiary ETF

[21:00] What are Hard Assets?

[23:00] Direct Beneficiaries, Indirect Beneficiaries, Opportunistic Beneficiaries of Inflation

[32:00] TIPS: The Biggest Misconception Regarding Inflation Hedging.

[35:00] Cryptocurrency

[37:00] Western Ideology vs Eastern Ideology for Gold

[40:00] Texas Pacific Land Corp ($TPL )

[42:00] Exchanges The Ultimate Indirect Beneficiaries of Inflation: London Stock Exchange ($LSEG), Honk Kong Stock Exchange ($388), Singapore Exchange ($SGXR)

[50:00] How not to Hedge Against Inflation

[53:00] Closing Questions and More from James Davolos

If you want to learn more about Horizon Kinetics, check them out on Twitter and their website.

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By Brandon Beylo

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