Rick Rule, President Sprott Asset Management USA—Wall Street View: “My Long Term Outlook is Very Bullish for Natural Resource Sector”—Video Interview New Orleans Invest. Conf. 2011
Rick Rule is the Founder of Global Resource Investments, Ltd., a full-service brokerage firm that specializes in natural resource investments in the US, Canada and Australia. In February of this year, Rick Rule joined with Eric Sprott of Sprott Inc. after Sprott acquired Global Resource investments. He is currently the President and Portfolio Manager of Sprott Asset Management USA.
In this Wall Street View update with Rick Rule, he discusses his Short & Long Term outlooks in the Natural Resource Sector, Shortage of Good Management in Resource Companies, Various Opportunities for Mining Speculators, and the four things an Investor should look at before investing in Resource Companies. Rick Rule has been in the Natural Resource Industry for over 30 years, whose insight into the sector has made him one of leading US specialists in the field. Here are some of the highlights:
- Short Term Outlook:
- “Short term, low and choppy. The volatility we have seen in the last 6 weeks, it was down payment. We will see the VIX (Volatility Index) above 30 for an extended period of time. The volatility will be absolutely terrifying. For people who have courage, couldn’t get better than this.”
- Long Term:
- “My long term, 3, 5, and 10 year outlook for this sector is very bullish, but I think we have an extremely difficult patch we have to get through”
- For Mining Speculators:
- “The opportunities that will be available for speculators to participate, particularly, in equity private placements when the more promising exploration companies run out of money and can’t continue to fund their development efforts will be very good in the first two quarters of next year”
- Shortage of Good Management:
- “We had a 20 year bear market in Resources, and a 20 year bear market in resources didn’t just wear out ore bodies. It meant that a whole generation of managers, my generation, are largely retired. The set of people that came in behind us didnât come into the resource business because there were no jobs. There was 22-25 year gap, so we face an absolutely critical skill shortage.”
- Four Things Investors Should Look For:
- “Management, Scale, Data, Resources”
For more information about Rick Rule and Sprott Asset Management USA, check out the websites listed above. Enjoy this Natural Resource SNNLive Wall Street View Update with Rick Rule from the New Orleans Investment Conference 2011.
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