Sunday, October 29, 2023

This "Unprecedented" Fiscal Doom Loop Is Getting Worse: Larry Lepard

Friend of Fringe Finance Lawrence Lepard released his most recent investor letter this week.

I believe Larry to truly be one of the muted voices that the investing community would be better off considering.

Larry was kind enough to allow me to share his thoughts heading into Q4 2023.

This is Part 1 of this letter, Part 2 will be published tomorrow.

QUARTERLY OVERVIEW. It was an interesting quarter.

This was not matched by the prices of crude oil and commodities, both of which were strong, and the bond market had a bad quarter as rates continued to rise across the curve.

As we have said before, we manage the Fund aggressively, and in bear markets for gold stocks, we expect that we will do worse than GDXJ. However, we also want to point out that the converse is true in bull markets; in 2019 EMA was up 98% vs. the GDXJ which was up 40%, and in 2020 EMA was up 122% vs. the GDXJ which was up 33%. We believe that when this market turns, the results will be similar.

https://quoththeraven.substack.com/p/this-unprecedented-fiscal-doom-loop

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