The Gold Report: Rick, you believe the natural resources sector is experiencing a cyclical decline in a secular bull market similar to the 1970s. Is that true for other sectors as well?
Rick Rule: I learned the hard way not to assume that my success in the natural resource business was transferable to other sectors, so I am going to stick with resources.
However, there are parallels with the gold market. In the 1970s, we had a spectacular resource market, in particular for gold. Its price soared from $35/ounce (oz) to $850/oz. By 1975, in the middle of that secular bull market, gold had fallen to $100/oz. Those who sold at the bottom missed an 800% move in six years.
"I own gold the way that I own life, auto or homeowner insurance. I regard it as catastrophe insurance."
It is important to understand that in cyclical markets like resources, declines in secular markets are to be expected. From my point of view, you need to understand cyclical declines for what they aresales.
TGR: Is it fair to think that the prices of natural resources will bounce back as they did in 1970s, when the recession was much shorter and not as global? Continue reading "Rick Rule: Be a Risk Manager, Not a Reward Chaser"
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If I wasn’t still getting a steady stream of emails after reminding you of the prediction challenge, I would feel like that pesky alarm that you dread as your morning wake up call. Well consider this your final hit to the “snooze button!” We are embarking on the last week of the contest.
If you have been following our blog, then you are no stranger to our prediction challenge. If you missed it, you are in big trouble!! Okay, well not really, but we HIGHLY recommend that you get caught up 
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