Sell Your Gold If...

By: Stephen Johnston | Mon, Mar 19, 2012
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Sell your gold if you believe:

Remember gold is first and foremost an insurance policy against monetary misbehaviour by our governments and central bankers.

US Employment Situation is Improving? Really?

The US Bureau of Labour Statistics reliance on labour force participation ("LFP") as a way to calculate unemployment leaves much to be desired. In practice, LFP means that as people leave the labour force, all else being equal, the BLS deems the unemployment rate to have dropped. Taken to the extreme, if LFP dropped to a single person who was also employed, the unemployment rate would be 0% with 300 million US citizens out of work. Sadly much of the recent "improvement" in employment simply stems from a drop in LFP.

Employment BLS BAC

I would argue that a declining LFP is not a healthy sign. In addition, the employment numbers hide another disturbing trend - long term unemployment is high - ie a large number of the unemployed have been out of work for more than 27 weeks.

Long term unemployment

Isn't Inflation Fun?

The importance of focusing on "real returns" in a "nominal return" world couldn't be made any more clear...

Monetise the Debt

The Ontario Securities Commission has a detailed definition of Accredited Investor which can be found here. However in general Accredited Investor means:

Some Quotable Quotes

"Let everyone be certain, Greece will not default, we will not let it default... We are returning to the road of economic stability," George Papandreou Former PM of Greece

"It's a battle of the politicians against the markets. But I'm determined to win the battle." - Angela Merkel, Chancellor of Germany 2010.

"No, Greece will not default. Please. In the euro area, the default does not exist because with a single currency the possibility to get funding in your own currency is much bigger," EU Monetary Affairs Commissioner Joaquin Almunia

"Greece will not default." Jean-Claude Trichet, former President of European Central Bank

"ISDA has now declared that Greece's restructuring does represent a default." Reuters

Markets 1: Politicians: 0

"We see housing market slowing down, but we don't believe there's a bubble in Canadian market right now," Benoit Durocher, senior economist Desjardins...



Agcapita Farmland Fund III

Farmland increasingly is in the news as more investors come to appreciate the superior qualities of the asset class - including low return volatility, diversification benefits due to a limited correlation to public equities and good risk adjusted returns. Funds 1 & 2 have a large, diversified portfolio of land across Saskatchewan.

Agcapita Fund III Map

Agcapita Fund III is currently open and RRSP eligible.



Stephen Johnston

Author: Stephen Johnston

Stephen Johnston - CIO
Petrocapita Income Trust & Agcapita Farmland Investment Partnership

Stephen graduated from London Business School and is the founder of one of Canada's largest farmland investment funds, Agcapita, and Petrocapita Income Trust an energy investment fund. Petrocapita and Agcapita are built around the core premise that the world is in a bull market in commodities driven by inflation and a step-change increase in demand and, accordingly, that investments with direct or indirect exposure to commodities in a politically stable environment such as Canada will provide above average returns. Agcapita holds a diversified portfolio of farmland and Petrocapita holds a diversified portfolio of low risk, producing energy assets.

Stephen has over 15 years experience as a fund manger - working for organizations such as the European Bank for Reconstruction and Development, Societe Generale and Baring Brothers. Stephen has appeared on Business News Network and CBC News and been quoted in such media outlets as Fortune, the Financial Times and The Globe and Mail.

Legal Notice: Copyright material, please do not re-use without consent. The opinions, estimates, projections and other information contained herein are not intended and are not to be construed as an offer to sell, or a solicitation to buy any securities, including any exempt market securities, nor shall such opinions, estimates, projections and other information be considered as investment advice or as a recommendation to enter into any transaction. Please contact your registered investment adviser for information that is tailored to your specific needs.

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