So tired

I meant tiered

It was a heck of a week. The old faithful Transports index blew up. An index in existence since 1896 did something truly unprecedented — it completely diverged from the broader market. If you bought the actual Transport index (price-weighted) versus the IYT ETF, you made an extra 20%:

The source, of course, was Avis Car Rental — an AI-enabled transportation company with distributed resources accessible to a highly-educated cohort of high-mobility workers and leisure consumers, uniquely suited to guide the development of society in the 21st century:

Yes, the rental car company. Efficient markets at work. But it did provide me with the opportunity of a very long career:

The broader point is that we are now seeing that which was unthinkable only a few years ago. Another forecast from my passive work that has (unfortunately for markets, but good for my credibility) come true.

Many critics of my work believe I am arguing that “valuation doesn’t matter” in the long-run and they retreat to the safety of their efficient market cathedral. This week we demolish it, because “in the long-run” we’re all dead. And I will not go quietly into that night.

We continue to be in the largest divergence in history between returns and “value.” If this week taught us anything, it’s to strap in — there’s a wild ride ahead.