It is yet to be seen whether inflation is driven by transitory factors related to the pandemic, as the Federal Reserve says, or whether we are witnessing a historic shift.
Today’s trade alert focuses on an interesting hedge option that you may not have considered. Broad exposure makes this investment a wise choice for those looking to cut back on volatility seen in other hedges.
Popular inflation hedges include gold, real estate, commodities, natural resource stocks, and Treasury inflation-protected securities (TIPS). Stocks with strong pricing power also tend to perform well during periods of rising inflation.
The U.S. Economy is headed for trouble…
Why are stocks absolutely soaring right now…? Yet at the same time millions of Americans are out of work… Commercial bankruptcies are piling up… Delinquent credit card debt is skyrocketing… Not to mention, we are smack in the middle of a pandemic that has all but forced our economy to a grinding halt… Something’s just not adding up. Friend, if you are confused by all of this… You are not alone… [Full Story]
Horizon Kinetics’ first ETF launch, The Horizon Kinetics Inflation Beneficiaries ETF (INFL), was released in January of this year. It’s an actively managed fund seeking long-term capital growth in inflation-adjusted terms from companies expected to benefit, directly or indirectly, from inflation. Typically, the fund seeks out inflation beneficiaries that can increase revenue without a corresponding increase in expenses in an inflationary environment.
The fund has exposure to global companies expected to be inflation beneficiaries such as exploration and production companies, transportation companies, mining companies, infrastructure, and real estate companies with a focus on asset-light businesses with royalty, streaming, rental, brokerage management, and leasing exposure. The actively managed fund’s portfolio includes common stocks, ownership units of publicly traded MLPs, as well as royalty trusts.
As far as inflation solutions go, INFL is a decent choice because it offers the option to cast a wide net over a trough of hedges, which most likely makes it less subject to volatility than an investment in a singular hedge option.
The Horizon Kinetics Inflation Beneficiaries ETF (INFL)
- Weighted Average Market Cap $21.42B
- Price / Earnings Ratio 33.82
- Price / Book Ratio 2.95
- 3 month return 2.94%
- Yield 1.68%
- Expense Ratio 0.85%
- Net Assets 631.17M
- Number of Holdings 37
Where to invest $1,000 right now...
Before you consider buying INFL, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not INFL.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
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