Robert Fitzwilson, Founder of the Portola Group, emphasizes the importance of energy and agriculture in addition to hard assets
Published in February 28, 2012on
“Sometimes investors will ask, ‘How much of my assets should I have in gold?’ That’s the wrong question. The question should be, how much of your wealth are you willing too see destroyed? What this cycle is really all about is wealth preservation and gold is a way to protect your wealth."
"Regardless, the secular forces almost ensure that the price of energy is going higher. With this as a backdrop, we have the Fed mandating that they are going to try to get the stock market higher and improve the economy by printing money. You can’t have that happen without demand for oil increasing. "
"So, both from a monetary perspective and a supply/demand perspective, the price of oil has to go higher and has to go higher in a substantial way. $170 to $250 a barrel oil would not surprise me. The bottom line is energy is another area where investors can make money and preserve wealth."
"Another area where investors can make money is in the agriculture space. From a long-term perspective, the amount of arable land is declining through erosion and conversion to other purposes. We also know the population is increasing and people around the world are striving for better quality food and more of it."
"The supply of water is also diminishing. So the outlook for agriculture is strong as far as the eye can see. To us it is fairly straight forward that the price of food commodities has to go higher, along with the secular change in the population. Another bullish factor for agriculture is rising input costs."
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