Lawrence Lepard: Gold Stocks are the Best Performing Asset Class When Inflation Hits like the 70s

Tom welcomes back Lawrence Lepard from EMA2 Equity Management Associates for a discussion on economic trends and the Federal Reserve's monetary policy. Lepard expresses concerns about the Fed's potential acceptance of a higher inflation rate due to rising U.S. interest expenses and a large budget deficit. Jerome Powell, the Fed chairman, is also contemplating rate cuts to support employment levels and government finances amidst ongoing inflation and uncertainty in unemployment data and Gross Domestic Product growth figures. Larry and Tom contemplate potential rate cut timelines, the possibility of a shift in Fed tactics, concerns over financial crises, and the potential impact of political events on the Fed's decisions before the upcoming election. The conversation shifts overseas to Japan's economic situation, with Lepard predicting that gold will reach new all-time highs due to Japan's reliance on imported oil and its shift towards purchasing oil in yen instead of dollars, potentially leading to a surge in gold demand and higher prices. Larry anticipates a decade-long bull market for gold and silver stocks as they are expected to double or even triple in value within the next 12 to 18 months due to higher metal prices, increased earnings, and potential dividends or stock buybacks. Larry expresses his investment preferences, focusing on companies that pay dividends or hold precious metals as treasury assets. He also emphasizes the importance of responsible capital management following lessons learned from previous cycles. Despite concerns about mergers and acquisitions for large companies during this period, Larry suggests they might pay higher prices later in the bull market instead of seizing opportunities at low prices now. Larry discusses his current projects, which include completing a quarterly report and writing a white paper on why sound money is crucial to solving the world's problems. He proposes making gold, silver, and Bitcoin legal tender, abolishing the Federal Reserve, letting banks fail if they engage in risky practices, and eliminating the Federal Deposit Insurance Corporation as steps towards progressing towards sounder money. Time Stamp Reference0:00 - Introduction0:53 - Rate Expectations3:05 - Employment Factors5:06 - Something Will Break11:00 - Recent Political Events16:35 - Mathematical Certanties20:14 - Bonds & Long-Term Demand23:32 - Stock Concentration26:00 - Crack-Up Boom Bust?27:35 - Global Problems30:55 - Wealth Destruction33:03 - Silver or Gold First?37:22 - Miners & Valuations41:05 - Dividends in Gold?42:53 - Finding Opportunity46:23 - Mexico & Mining?49:53 - Germany & Bitcoin Sales53:15 - Report & Whitepaper56:52 - Spreading Awareness1:00:16 - Wrap Up Talking Points From This Episode * Larry discusses Fed's potential acceptance of higher inflation due to US interest expenses, budget deficit & Jerome Powell's rate cuts. * Lepard predicts a decade-long gold bull market due to Japan's yen oil purchases, higher prices, increased earnings. * Larry suggests focusing on dividend companies or precious metals; proposed steps towards sounder money, including making gold legal tender. Guest Links:Germany Bitcoin Sale: https://finance.yahoo.com/news/germany-sells-off-final-bitcoin-064941448.htmlNewsletter: http://eepurl.com/gOf1dTWebsite: http://www.ema2.comTwitter: https://twitter.com/LawrenceLepard Lawrence W. Lepard is the Founder and Managing Partner of Equity Management Associates...