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Dear Fellow Investor,
Wow. I knew that this year’s New Orleans Conference was going to be great as I watched the registration numbers tick up in the weeks beforehand...and as the U.S. stock market endured an historic roller-coaster ride.
But as I watched as hundreds upon hundreds of investors flocked into our general session hall to hear our speakers, I knew something special was happening.
And then our speakers delivered like I’ve rarely seen before. They put the severe stock market sell-offs (and sharp rebounds) into perspective and highlighted data points that have escaped the mainstream media.
Peter Boockvar, Mike Larson, Peter Schiff and Ben Hunt talked about the evolution of the “everything bubble,” and what could pop it.
They all agreed that a bursting of that bubble should come within the next two years, and very likely next year. But there was a lively debate between Hunt and Schiff — with Hunt arguing that the day of reckoning won’t come until something causes investors to lose confidence in central banks and Schiff maintaining the bust itself will prove that the central banks are helpless.
Legendary market commentator James Grant echoed the disdain expressed by many of our speakers toward the Fed and central banks in general. He also believes we’re in an era of rising interest rates not so much because of the Fed’s shift in monetary policy, but because the markets are going to demand much higher returns as the federal debt grows to potentially unmanageable levels.
Bottom line: Hunt recommends that investors buy companies with pricing power, and higher inflation is the figurative “fourth horseman” that few are expecting. Schiff, Larson, Grant and Boockvar are very bullish on gold for essentially the same reason.
Also commenting on America’s massive and ever-growing debt, popular muckraker Doug Casey suggested a planned default — an organized demolition of the monetary system — rather than the haphazard default that now seems inevitable.
I confessed to Doug that I liked that idea.
Elsewhere, Dennis Gartman, Mark Skousen, Guy Adami, Adrian Day and Robert Prechter had great insights on the recent market volatility...Jonah Goldberg and Mark Steyn put the political hijinks of the past two years in perfect perspective...and our Charles Krauthammer Retrospective Panel was a moving tribute that attendees will remember for years.
And then came the specific picks, where I think the big money is going to be made.
New Boom In Metals And Mining
Without exception, every analyst and investor in the metals and mining sector had smiles on their faces in New Orleans.
The reason: The set-ups for a number of commodities were extraordinary...most companies in the sectors were trading near historic lows...and there were a number of specific companies that seemed poised to make huge news.
I’ll save the specific company names for our Gold Newsletter and Gold Newsletter Alert readers, but let’s talk about the two commodities that look most exciting.
First off, our experts were extremely bullish on uranium. Granted, as I pointed out on the Mining Stocks Panel, everyone agreed that uranium was going to be next year’s big winner. And we had said the same thing for the past five years.
So why believe this coming year will be any different? Because the price of uranium just reached a two-and-a-half year high.
It’s still far too low at only about $28/pound, but the trend is clear...and it seems likely to continue as utilities are finally forced to return to the market to secure supplies.
The exciting factor is that junior uranium companies multiplied in price during the last uranium boom, despite the fact that there were hundreds of them in the sector. Now there’s only about a dozen top-quality companies, and all of the attention and money will be focused on them.
The moves up could be explosive.
Elsewhere, just about everyone was bullish on gold (and therefore silver as well).
I explained a remarkable investing opportunity just ahead with the Fed’s next expected rate hike in December.
Beginning with their first such rate hike in December 2015, the Fed has raised rates every December since, in 2016 and 2017 as well. In every instance, gold was sold downward going into the rate hike, but then rallied strongly afterward.
During those rallies, junior mining companies with large resources typically multiplied two or three times over in price.
So what’s going to happen this time around?
If the Fed raises rates as expected, we’ll probably see a repeat of the previous rallies.
And here’s the beautiful part: If they don’t raise rates in December as expected, investors will view this dovish surprise as a sign that the Fed sees underlying economic weakness.
That would be even more bullish for gold, and the price should rise much more than in the alternative scenario.
Yes, it would appear to be a “no lose” situation, and our experts recommended a number of top gold, silver and even copper plays in New Orleans that promise to be the biggest winners.
Much More To Come
New Orleans 2018 was a veritable whirlwind, and I’ll continue providing the most compelling insights and predictions over the days ahead, as we review our notes, the transcripts and our recordings.
So stay tuned....
All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference
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