The last week of July, market experts, investors and business executives traveled to Boca Raton, Florida for the Rule Symposium, hosted by veteran investor and speculator Rick Rule.

The four-day event, which ran from July 26-29, featured numerous panels, presentations and discussions on the current commodity cycle and stock market drivers.

There has also been rigorous discourse on the mode, drivers and factors behind inflation, as well as how central banks like the US Federal Reserve are responding by raising interest rates.


Days 1 and 2: bursting bubbles and banks

After a brief introduction and a well-attended gala reception on July 26, symposium attendees got up early on July 27 to hear insights from leaders like James Rickards.

Rickards, economist and editor of Strategic Intelligence, participated in the study “Super Bubbles — Fact or Fiction? panel, which also included Rule, as well as Grant Williams, podcast host and senior adviser to Matterhorn Asset Management, and moderator Albert Lu, founder of Luma Financial.

Offering context, Lu presented the definitions of bubbles and super bubbles: both are bounded by sigma shifts – a unit of measurement used to talk about statistical significance – just in different amounts.

“They defined a two-sigma variation as a bubble and a three-sigma variation as a super bubble,” he said, telling the audience, “A bubble is something that happens multiple times in your lifetime. (the Internet bubble for example) A super bubble is like 1920, maybe once in a lifetime.

However, Lu acknowledged that the bubbles now occur more often. Rickards agreed, noting that bubbles are easy to see – due to sigma variations – but difficult to gauge in terms of when they will burst.

According to the well-known economist, there are currently three super bubbles: stocks, real estate and commodities. Panelists pointed out that it could take up to 25 years to recover after a bubble burst; however, good companies will be able to emerge from uncertainty with greater speed and agility.

The remainder of the morning included presentations from Ross Beaty, Chairman Emeritus of Pan American Silver (TSX: PAAS, NASDAQ: PAAS) and Equinox Gold (TSX: EQX, NYSEAMERICAN: EQX). He used his time to emphasize the value of gold, saying his long experience validates his position as a store of value.

“I just think gold is a bit like a coil spring today,” he said. “He just has this incredible intrinsic value. And that intrinsic value is going to be further realized (in) the near future.

Beaty’s presentation focused on gold was followed by an introduction to Battle Bank, a new financial institution launched by Rule alongside Frank Trotter and Vincent Amato, two of the men behind EverBank.

Designed to be a “better bank” and slated for official launch in early 2023, Trotter told symposium attendees that Battle Bank will operate as a national community bank with low overhead.

“The American banking industry – Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), Chase (NYSEAMERICAN:CCF), Charles Schwab (NYSE:SCHW) – American banks keep $53 billion a year of your money,” Trotter said.

“Because (American banks) have to operate branches, they have to do all this other business that they do. And the branches are really there so they can sell high-margin products, like variable annuities and things like that, to people wandering aimlessly down the street,” he continued.

After a lunch break, symposium guests broke into groups and attended workshops covering a range of topics, including company presentations, market overviews and investment strategies.

Day 3: Fed rate hike and inflation take center stage

Danielle DiMartino Booth took the stage early July 28 as the day’s keynote speaker; fittingly, its appearance came the day after the US Federal Reserve’s last interest rate hike.

DiMartino Booth, a vocal critic of Fed Chairman Jerome Powell, pointed to the impossibility of Powell’s insistence that the Fed could head for a soft economic landing.

“Yesterday we had what the market certainly interpreted as another Powell pivot,” DiMartino Booth told the crowd. She added that the Fed has a decision to make: it can either fight inflation or fight recession.

“We can’t do both. And I think that’s what we need to focus on,” she said.

The founder and head of Quill Intelligence concluded her talk by highlighting the correlation between rising stock markets and rising interest rates.

“Every time the stock market goes up, it’s like, ‘This is another really big rate hike,'” she said. “And that’s what people don’t understand is that the irony of risky assets going up means you’re buying another rate hike, which ripples through the economy with a lag – but we let’s see it.”

Later that morning, DiMartino Booth appeared on the show “Taming Inflation – What Will It Take?” panel with Dr. Nomi Prins, David Stockman and Rule.

Dr. Prins, financial expert and author, sees the current market as an opportunity to buy positions in resources, especially in energy. “What we saw yesterday was the Fed looking at what’s happening in terms of the real parts of inflation pushing up that base number and pushing up the headlines, which are all energy related. “, she said.

Stockman, who served as director of the Office of Management and Budget under US President Ronald Reagan, warned of the precarious position the Fed currently finds itself in due to the $88 trillion in debt the country holds. .

“The Fed has no choice but to continue to tighten, because inflation is much deeper in the air, and it’s going to last much longer in the range (8-9%) than we expect. ‘expect today,” Stockman said.

“And as a result of that, the economy is going to crash. And then we’re going to find out that this party that we’ve had for 20 to 30 years was not practical.

Inflation was also discussed separately by Rickards the day before – he explained why interest rate hikes might not be enough to reverse its effects, noting that inflation comes from different sources.

“The supply side of inflation is called ‘cost push’, (where) oil prices go up, food prices go up, transportation costs go up…and those costs are pushed into the economy.” he other type of inflation that Rickards has described as “demand pull” comes from the demand side of the economy. Here, consumers “adopt an inflationary mindset” that encourages them to make large purchases in order to avoid paying more for the same item later.

As noted by Rickards, there is currently a “cost-push” inflationary regime driven by high prices for energy, food, transport, etc. The economist and editor went on to say that while there hasn’t been “demand-driven” inflation yet, there certainly could be, and it’s “something worth talking about.” ‘to be watched very closely’.

The Investing News Network conducted video interviews with many of the symposium’s expert speakers on the penultimate day of the event – Click here for YouTube Playlist.

Day 4: Mining veterans share words of wisdom

The final day of the conference began with an address by Rule, who paid tribute to Lukas Lundin, the mining magnate who founded the Lundin Group. Lundin died on July 26 after a long battle with brain cancer.

During his eulogy, Rule recounted the many times Lundin was instrumental in his life.

After his somber remarks, Rule hosted the annual “Living Legends” panel, a venerable “who’s who” of the mining industry, including Beaty; Randy Smallwood, Chairman of the World Gold Council and CEO of Wheaton Precious Metals (TSX: WPM, NYSE: WPM); Sean Roosen, Executive Chairman at Osisko Mining (TSX:OSK); Rob McEwen, President and Chief Owner of McEwen Mining (TSX: MUX, NYSE: MUX); and Robert Friedland, Co-Executive Chairman and Director of Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF) and Ivanhoe Electric (TSX:IE,NYSEAMERICAN:IE).

The hour-long discussion was punctuated by each caption recounting their entry into mining, as well as how their projects and backgrounds intersected over the years.

Friedland was also on hand after the panel for the symposium’s final keynote, where he highlighted the important role the resource sector plays in the global goal of mass electrification.

The four-day event ended with a lively roundtable discussion on exploration where skill was the main focus. Panelists agreed that a company’s management team and track record are of the utmost importance. However, that means little if the project is in an inhospitable or geopolitically dangerous jurisdiction.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, have no direct investment interests in any of the companies mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or completeness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the views of Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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