Rocklinc Principled Equity ETF · TSX:RKLC
Rocklinc Principled Equity ETF — Rocklinc Investment Partners — Investor Presentation (April 2020)
31 slides from Rocklinc Principled Equity ETF's investor presentation, Apr 21, 2020
Slide 1: Recession, Re-flation & Restoration
“Recession, Re-flation & Restoration” Christian Embassy April 21, 2020
Slide 2: Disclaimer
Disclaimer u This presentation has been prepared by Rocklinc Investment Partners Inc. and does not necessarily reflect the opinions of the Christian Embassy. u The information contained in this presentation is not investment or financial advice and is not intended to be used as the basis for making
Slide 3: Outline of Presentation
Outline of Presentation A. Starting Point – Global Balance Sheet – January 1, 2020 B. Recession – Massive GDP contraction C. Re-flation – Avoid Depression at all costs u Policy Response u Unintended Consequences u Investment Strategy D. Restoration u Economy u Spiritual – “Finding hope into a world
Slide 4: A. Starting Point - January 1, 2020
A. Starting Point - January 1, 2020
Slide 5: Starting Point – US/CDN Debt
Starting Point – US/CDN Debt 1. Over the past 15 years every $1 in new debt has only added 30 cents in GDP, and that is with interest rates approaching zero. 2. In 2020 with over $5 trillion in new debt and trillions in new digital dollars GDP is expected to drop by 5% (annualized). u US Debt in 198
Slide 6: Starting Point - January 1, 2020
Starting Point - January 1, 2020 u Record Levels of Sovereign & Personal Debt u Liquidity Problems (Repo Market – starting September 2019) u Massive Unfunded Liabilities (healthcare & pensions) u Lowest Interest Rates in History – including negative rates u Devastating Demographics u Weakest Corpora
Slide 7: B. Recession
B. Recession COVID-19 - Exogenous shock on the immune system of a weakened global economy. 1. Demand Shock 2. Supply Shock 3. Oil Shock – breakdown in OPEC & drop in demand of up to 25 million barrels per day on a base of 100 mbpd! 4. Wealth Shock – financial markets and real estate 5. US Dollar Sho
Slide 8: Recession
Recession Second Quarter 2020 u US GDP is expected to drop between 30-40%, unemployment is expected to top 20%. Largest moves in modern history. u Canadian GDP is expected to drop 25-30%, unemployment is expected to reach 15-20%. Full Year 2020 u GDP expected to drop 5-6% in North American and appro
Slide 9: C. Re-Flation – avoid a depression at all costs!
C. Re-Flation – avoid a depression at all costs! u COVID-19 Policy Response – “flatten curve” via lockdowns 1. Massive increase in Gov’t spending/deficits to replace lost income, and pay for rising welfare costs. 2. Unprecedented increase debt (Debt/GDP ratios increase 10-20%!). 3. Enormous increase
Slide 10: C. Re-Flation – avoiding a depression
C. Re-Flation – avoiding a depression u COVID-19 Policy Response – “flatten curve” via lockdowns 5. Drop in the velocity of money - people at home panicked requires even more money to be printed! 6. Risk of substantial inflation when economy is opened and if citizens mistrust the value of their mone
Slide 11: Fiat Currencies vs. Gold
Fiat Currencies vs. Gold Figure 1. Major currencies priced in gold
Slide 12: Central Bank Explosion
Central Bank Explosion Total Assets of Major Central Banks Figure 1. °° MAJOR CENTRAL BANKS: TOTAL ASSETS ss (trillion dollars, nsa) 504 — Fed (Mar=5.2) 45") —— ECB (Mar=5.6) — BOJ (Mar=5.6) —— PBOC (Mar=5.2) 354 3.04 254 2.04 1s 104 5 yardeni.com 2007 ' 2008 T 2009 ' 2010 T 2011 ! 2012 ' 2013 ! 201
Slide 13: Central Bank Explosion – yearly change
Central Bank Explosion – yearly change
Slide 14: Central Bank Explosion - cumulative
Central Bank Explosion - cumulative
Slide 15: Unintended Consequences
Unintended Consequences A. Universal Stay at Home order is the “most devastating economic and social decision in modern history”. 1. Socially dangerous. Loss of work = loss of dignity (de-humanizing). 2. Increase in suicides, alcohol and drug abuse and domestic violence. 3. Underfunding of defined b
Slide 16: Unintended Consequences
Unintended Consequences B. Exposed the weakness of globalization 1. Vulnerable supply chains – too much dependence on untrustworthy countries. Nations need to be as self-sufficient as possible in essential areas. We cannot blindly trust governments. 2. Larger rupture in relations between China & US.
Slide 17: Unintended Consequences
Unintended Consequences C. Expansion of the State – stealth expropriation of wealth 1. Managed low interest rates for as long as central bankers can pull it off - steals from savers, reward debtors (governments are the largest debtors). 2. Printing money steals through inflation, it undermines finan
Slide 18: Investment Strategy
Investment Strategy 1. Keep a cash reserve – hold in USD/gold. 2. Significant exposure to precious metals (monetary substitutes). They are undervalued and under owned. No counterparty risk. 3. Minimal exposure to leveraged financials (Banks and Life Insurance Firms). European and Chinese Banks are l
Slide 19: Investment Strategy
Investment Strategy 6. Nibble on companies that have been hammered in the early liquidation and are too inexpensive to pass up. 7. We maintain a “hit list” of companies we are ready to add to client portfolios at the right prices. 8. Patience! Wait for the fat pitch. We are in early innings of this
Slide 20: D. Restoration - Economy
D. Restoration - Economy 1. Protect private property ….collateralize currency, stop Gov’t growth - cut off their flow of funds. 2. Protect our tax base – our national defense & social programs require a vibrant and free economy. Small and medium sized businesses are the heart of economy, they have b
Slide 21: Restoration - Economy
Restoration - Economy 6. Develop an exit strategy from the global monetary debasement arising from the economic effects of the COVID-19 and decades of monetary folly 7. Formulate a detailed protocol to help us exit the current lock down prudently and swiftly! Prepare now for the next time a virus li
Slide 22: Restoration - Economy
Restoration - Economy 10. Encourage front line charities to help in the care for the sick and needy. Government cannot do it all! Give communities the power to make decisions at the local level where they have better knowledge of the real conditions. 11.Truth telling. Listening to all views, not shu
Slide 23: Restoration – Spiritual
Restoration – Spiritual Finding HOPE into a world of Distress Christians historically have led in times of widespread diseases and have risked their own lives and died treating sick people. Examples: 1. Plague of Cyprian 250-270 AD 2. Black Plague (Italy – 1348 – Catherine of Siena), (Zurich – 1519
Slide 24: Restoration – Why do Christians Get Involved?
Restoration – Why do Christians Get Involved? Three Key Reasons 1. All human beings made in the image of God and life is a sacred gift from God to be protected and cherished. 2. Christians are being obedient to their Lord by living out the two great commandments (Matthew 22:36-40) and following Jesu
Slide 25: Restoration – Spiritual
Restoration – Spiritual 1. There is no such thing as a maverick/chance virus. u The whole universe is under the sovereign control of God. u Isaiah 45:6(b)-7; “I am the Lord, and there is no other. I form light and create darkness, I make well-being and create calamity, I am the Lord who does all the
Slide 26: Restoration - Spiritual
Restoration - Spiritual 2. What is the purpose of COVID-19 or other viruses or sicknesses or natural calamities from God’s perspective? u They should drive us to God. They show us our weakness and our dependence on God. We do not determine the length of our days, God does. Each one of us is going to
Slide 27: Restoration - Spiritual
Restoration - Spiritual u Jesus also came to take the punishment we deserve as sinners. He came to die in our place. The Bible tells us that the “just one died for the unjust”, that Jesus died “once for all”, that He redeemed us from the curse of the law by becoming a curse for us, and that He bore
Slide 28: John 17:3 and John 3:16
John 17:3 “And this is eternal life, that they know you, the only true God, and Jesus Christ whom you have sent.” John 3:16 “For God so loved the world, that he gave his only Son, that whoever believes in him should not perish but have eternal life.”
Slide 29: Appendix A Resources
Appendix A Resources u Economics in One Lesson – by Henry Hazlitt u When Money Dies – by Adam Fergusson u The Book that Made your World - by Vishal Mangalwadi u Christ from Beginning to End - by Trent Hunter and Stephen Wellum u The New Case for Gold - by James Rickards
Slide 30: Appendix B – Zwingli's Black Plague Poem
Appendix B – Zwingli’s Black Plague Poem Contracted Black Plague On Death Bed Recovery Verses 1-4 Verses 5-8 Verses 9-12 Help me, O Lord, My pains increase; My God! My Lord! My strength and rock; Haste to console; Healed by the hand. Lo, at the door For fear and woe Upon the earth I hear death’s kno
Slide 31: WWW.ROCKLINC.COM
ROCKLINC Worth. Investing. WWW.ROCKLINC.COM
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