| Dear Friend, This is one of my favorite anecdotes from our first Strategic Investment Conference (SIC) about 16 years ago. I was just walking onto the stage to do the final presentation when one of my partners came up to me and whispered into my ear, “Enjoy this. It will never get any better than this. Don’t mess it up.” Well, “mess” was not exactly the word he used, but let’s keep it family friendly here. Since that first SIC in San Diego, I’ve seen the same pattern over and over. Every year, SIC attendees come up to me and tell me it was the best SIC we’ve ever had. Does it mean the best is in the past? Absolutely not. And I will tell you why I don’t believe in “peak SIC.” For the past 16 years, I’ve seen this conference get bigger and better all the time. The 2019 lineup of five-star speakers—including Kyle Bass, Howard Marks, and Carmen Reinhart—certainly is a testament to that. At this year’s SIC, we will have some of the world’s top asset managers and economists in the same room together... and I am sure this amazing roster of speakers will also make for lively panel discussions. One of the panels I am looking forward to is titled, “How Much of a Danger Is China’s Economy?” China is of special interest this year. One, because of the tit-for-tat trade skirmishes with the United States, but also because signs are abounding that Xi Jinping’s regime is taking a political turn toward totalitarianism. Both could have significant consequences for you and me, politically as well as financially. Among the panelists is hedge fund superstar Kyle Bass, founder and principal of Hayman Capital Management. He's widely known for successfully predicting the subprime mortgage crisis and acting on his predictions. Kyle’s last appearance at the SIC was in 2015, so I feel fortunate to have him this year. He is so booked out for interviews and speaking engagements that getting him this year feels like a miracle. Another panelist is veteran China analyst and one of the rare China bulls these days, my friend Simon Hunt of Simon Hunt Strategic Services. I think he may have been the first analyst ever in the research business to cover China, and I greatly value his insights. Joining Simon is Felix Zulauf, president of the Swiss firm Zulauf Asset Management. Felix was a member of the Barron’s Roundtable for 30 years, so he is most definitely worth listening to. The fourth panelist will be Leland Miller, CEO of the famous China Beige Book. We all know how hard real data on China’s economy is to come by. The Beige Book might be the world’s only reliable economic database tracking the Chinese marketplace. And, of course, Louis Gave, co-founder and CEO of Gavekal Research, without whom no China panel would be complete. Living in Hong Kong, Louis has his finger on the pulse of the Chinese financial system. This is just one of the panels we will present to you. However, I don’t want to let this letter get too long, so I’ll tell you more about other panels and speakers in coming emails. I hope you will join us for this and the other panels. Click here to get the details and to order your SIC 2019 Virtual Pass. Your peak SIC is a recurring event analyst, John Mauldin
Chairman, Mauldin Economics | 