Ruffer Investment Review/John Ruffer/October 2022
Cartoon courtesy of MichaelPRamirez.com
“Central to our continuing belief that inflation is the end-game is the central bankers’ extreme reluctance to be harsh with the economy; our views are not changed by Jerome Powell’s recent belligerence – it’s one thing to sound fierce about raising interest rates when they are 3%, but quite another to do it at 20% in the midst of a recession, as his distinguished predecessor Paul Volcker did.”
USAGOLD note: Ruffer says that in his forty-five years as an investor, he “cannot recall a more dangerous period than today.” It is a time when “plentiful liquidity” is “overwhelmingly attractive.” He says opportunities will arise in the aftermath of a crisis, but “first, we have to get through the storm.” Though Ruffer does not mention gold in this particular advisory, the firm has consistently advocated it over the years as a sensible portfolio holding for the times. (Please see Ruffer Radio’s “Gold Matters,” September 2020)
