HorizonKinetics

Wealth management and thought leadership. #HorizonKineticsResearch #HorizonKineticsJapan #HKMutualFunds #HorizonKineticsETFs

[HorizonKinetics @HorizonKinetics]

For our latest quarterly Commentary, the topic is the single most important—yet most ignored—factor in long-term investing: the way TIME really functions in compounding. What’s missing, we decided, is a simple math lesson to really SHOW it.
More here:
https://t.co/kYSjYZoixz

[HorizonKinetics @HorizonKinetics]

HK's James Davolos joins George Noble on The Noble Update Podcast to discuss Horizon Kinetics’ perspective on the end of the zero-interest-rate era and what it means for investors.
#HorizonKineticsInflationBeneficiariesETF $INFL #inflation @gnoble79

https://t.co/q1CnhtKlJQ

[HorizonKinetics @HorizonKinetics]

(9 of 9) It’s a user-friendly, phone-click wager or trading instrument that is very popular among certain retail traders. It’s designed to be. It’s referred to as market gamification.

[HorizonKinetics @HorizonKinetics]

(1 of 9) Perpetual futures, or "perps," require some explanation before an informed judgment can be made about their threat to the regulated securities exchanges. To date, their sole allure seems to be with retail investors.

[HorizonKinetics @HorizonKinetics]

(8 of 9) In contrast, a perpetual has no expiration date. And there is no delivery of the underlying physical asset. Therefore, it can’t be used to hedge a business commitment or exposure, and is therefore useless for a commercial customer—and, more broadly, for the economy.

[HorizonKinetics @HorizonKinetics]

HK's James Davolos joins the "Inside Active" podcast with host @DavidCohne to explore how investors can position for inflation.
#HorizonKineticsInflationBeneficiariesETF $INFL #inflation @BBGIntelligence

https://t.co/BgBbZ32NHV

[HorizonKinetics @HorizonKinetics]

(6 of 6) If the capital allocators at those land companies understand the ultimate value (and valuation multiple) difference between a perpetuity like surface acreage and the depletable minerals that come with it, they can enhance that value.

[HorizonKinetics @HorizonKinetics]

(1 of 6) It’s a rare public market investor who buys land. How would you even do it? It’s not an uncommon asset class among the extremely wealthy. We once listed the largest of them; it’s not a short list and they own a LOT of land. Why do you think that is?

[HorizonKinetics @HorizonKinetics]

(5 of 6) Or isolated from compute power for AI, which translates into demand for water to cool the electric power plants that provide the electricity for a multi-thousand-acre 10-gigawatt campus that could power 2x Chicago’s electricity demand.

[HorizonKinetics @HorizonKinetics]

(11 of 11) But now the market price is partly set by the index’s associated ETFs as a profit-making business, not merely as a measuring tool. How can you reference the S&P 500 as a benchmark when the index-tied ETFs are the ones setting the benchmark?!

[HorizonKinetics @HorizonKinetics]

(1 of 11) We’re not antagonistic—as some seem to believe—toward indexation as a concept, nor as it was first practiced in the 1970s by Vanguard’s founder, John Bogle. It can be a valuable tool, and did much good for many.

[HorizonKinetics @HorizonKinetics]

(10 of 11) Which is kind of weird. You once knew if your stocks were expensive or performing relatively well because they could be compared, arms-length-basis, to the whole market.