| Dear Reader, Gavekal CEO Louis Gave proved yet again why he is among the top-rated SIC speakers year after year. In his presentation, “Wars and Their Consequences,” Gave stated that the Russia-Ukraine war is actually “two separate wars: the military invasion and the weaponization of currencies.” In the first category, he said, we’ve learned that—thanks to drones—modern warfare has become much cheaper and thus more decentralized. You don’t need F-16 fighter jets anymore if you can get so much impact from drone strikes. More important, though, is the West’s weaponization of currencies, which has had several unintended consequences. One is that by freezing Russian bank accounts and seizing oligarchs’ assets, we have given Chinese communist leader Xi Jinping a convenient excuse to invade Taiwan. The reason he hasn’t done it so far, said Gave, is that he feared the exodus of wealthy Chinese investors. But now that he can show them that the West isn’t trustworthy when it comes to the safekeeping of their assets, he has the green light to do whatever he pleases. To find out the unintended consequences of this move for investors like you and me, click here to get your Virtual Pass now and watch the video recording of Louis’s presentation. It’s truly a can’t-miss session. Other fascinating sessions today: We saw Louis Gave in a fireside chat with his father, Charles Gave, who recommended that in this inflationary environment, investors should keep 50% of their portfolio “in anti-fragile assets” like energy and gold. Peter Boockvar presented evidence that inflation will continue to rise, collected from earnings calls and reports of major US corporations that are looking to offset their cost increases. Get your SIC 2022 Virtual Pass to learn what inflation-proof assets he is bullish on right now. Bond expert James Bianco added to this by stating that the US has the highest inflation rate of the G-7 right now... and that the bond market “has never been this bad in terms of total returns.” Where do you go when both stocks and bonds look bad? In a fireside chat, Boockvar and Bianco discussed monetary policy, agreeing that “the Fed will raise rates until either inflation comes down or something breaks.” Audience favorite George Friedman gave a “How did we get here?” presentation that clearly showed how history repeats itself: “In the 1800s, America was a third-world country,” he said, explaining how through cheap labor and cheap products, the US gained the status of a prime exporter... until it was replaced by Japan and, later on, China. Find out who Friedman thinks is the next big exporter—get your Virtual Pass here. Friedman’s riveting presentation was followed at the end of the day by our China Panel with Louis Gave, Emily de La Bruyère, Bill Bishop, and Jacob Shapiro. Still three more days to go! On Monday, May 9, we’ll continue the conference with several headliners, including former Secretary of State Henry Kissinger in conversation with rockstar historian and Kissinger biographer Niall Ferguson... investing legend Howard Marks... disruptive-technology investor Cathie Wood of ARK Invest... SIC faves Felix Zulauf and Mark Yusko... and more. To join us live for this momentous SIC day, click here to get your Virtual Pass now. Best, Mauldin Economics P.S. Even if you can’t watch all the live sessions, the video and audio recordings and transcripts that are part of your Virtual Pass will keep you caught up. Videos are usually available the same day. Click here for your Virtual Pass. |
