Value Hive Podcast

James Davolos: The Best Businesses To Own During Inflation

May 14, 2021
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INSIGHT

CPI Is A Constructed Measure

  • CPI is a constructed basket estimating average American daily expenses and drives Fed policy.
  • Measurement choices like substitution and quality adjustments create disconnects with everyday inflation.
INSIGHT

CPI Adjustments Can Mask Reality

  • CPI adjustments use substitution and quality changes that can understate consumer pain.
  • Everyday and life-costs like healthcare and education remain inflationary despite reported disinflation in other categories.
ANECDOTE

Fund Idea Grew Before 2020 Shock

  • Horizon Kinetics worried about fiat debasement well before 2020 and built hard-asset portfolios over years.
  • The 2020 money printing accelerated their inflation thesis and crystallized the Inflation Beneficiary ETF idea.
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