{"id":67406,"date":"2024-04-18T17:46:56","date_gmt":"2024-04-18T22:46:56","guid":{"rendered":"https:\/\/olduvai.ca\/?p=67406"},"modified":"2024-04-18T17:46:56","modified_gmt":"2024-04-18T22:46:56","slug":"the-federal-reserve-is-clearly-trapped-lawrence-lepard","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=67406","title":{"rendered":"“The Federal Reserve Is Clearly Trapped”: Lawrence Lepard"},"content":{"rendered":"
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“The Federal Reserve Is Clearly Trapped”: Lawrence Lepard<\/a><\/h3>\n

Friend of Fringe Finance Lawrence Lepard released his most recent investor letter this week.<\/strong><\/p>\n<\/div>\n

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Friend of\u00a0Fringe Finance\u00a0<\/em>Lawrence Lepard released his most recent investor letter this week. He gets little coverage in the mainstream media, which, in my opinion, makes him someone worth listening to twice as closely.<\/p>\n

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Photo: Kitco<\/figcaption><\/figure>\n<\/div>\n

Larry was kind enough to allow me to share his thoughts heading into Q2 2024. The letter has been edited ever-so-slightly for formatting, grammar and visuals.<\/p>\n

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QUARTERLY OVERVIEW\u00a0<\/strong><\/p>\n

Globally, the stock markets continued their 45-degree angle rise during the first quarter. Crude oil, and\u00a0 commodities broadly, also had a stair-step rise consistently during the quarter. Gold and silver and the\u00a0 miners were an interesting dichotomy. Bullion prices were flat to slightly down in January and February,\u00a0 and the miners were clobbered during those early months of Q1. However, in March the price of gold\u00a0 broke through the long-standing $2,070 ceiling and the miners responded, driving the Fund up by 25.4%.\u00a0 Gold miner indices were down 17% in the first two months before the March move.<\/p>\n

Note that the gold mining stocks still have not provided any leverage to the price of gold. In fact, in the\u00a0 first quarter they did not even keep pace with the increase in the price of gold. With gold up 8.1% in the\u00a0 quarter, the gold mining indices were up 2%. Typically, gold miners provide 2x to 3x leverage in terms\u00a0 of returns; so with gold up 8%, the miners would typically have been up 16% to 24%. This supports our\u00a0 thesis that the miners are still undervalued and are going to mean revert with a vengeance as this bull\u00a0 market in gold continues. The gold mining shares have a long way to go before they reflect fair value.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

“The Federal Reserve Is Clearly Trapped”: Lawrence Lepard Friend of Fringe Finance Lawrence Lepard released his most recent investor letter this week. Friend of\u00a0Fringe Finance\u00a0Lawrence Lepard released his most recent investor letter this week. He gets little coverage in the mainstream media, which, in my opinion, makes him someone worth listening to twice as closely. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[303,32068,374,32086,20223,1138,3650],"class_list":["post-67406","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-fringe-finance","tag-gold","tag-lawrence-lepard","tag-quoth-the-raven","tag-stock-market","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=67406"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67406\/revisions"}],"predecessor-version":[{"id":67407,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67406\/revisions\/67407"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=67406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=67406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=67406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}