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Please note: The Frank Talk articles listed below contain historical material. The data provided was current at the time of publication. For current information regarding any of the funds mentioned in these presentations, please visit the appropriate fund performance page.

Retire Happy With Dollar Cost Averaging
April 1, 2019

Gold has failed to move above $1,400 since 2013

Last week I had the pleasure of attending and presenting at the Oxford Club’s 21st Annual Investment U Conference in St. Petersburg, Florida. As many as 400 accredited investors were in attendance from all over the U.S.

The main topic was the current retirement crisis, which I wrote about earlier last month. Baby boomers are reaching retirement in worse financial shape than the previous generation—a phenomenon we haven’t seen in at least six decades.

So how can we reverse course and assure future generations are financially prepared to leave the workforce?

A common theme running through many of the Oxford presentations was to start investing early and to take advantage of compound interest.

This is so important. Albert Einstein once described compounding as “the eighth wonder of the world.”

If you’re reading this and have kids or grandkids, I urge you to help them on the path to participating in the market now. It doesn’t require as much capital as you might think—especially if you’re investing with dollar cost averaging.

What it does require, though, is discipline. Put a long-term plan in place and let compound interest work its magic.

I’ve shared this chart with you before, but I think it’s worth sharing again. It shows a hypothetical initial investment of $1,000 in an S&P 500 Index fund in March 2009. Ten years later, after regular monthly contributions of only $100, the value of that initial investment grew at an annualized 12.96 percent to more than $26,385. Investors who had the discipline to stick with this plan and reinvest the dividends were rewarded handsomely.

The Power of Dollar Cost Averaging
click to enlarge

Remember, the illustration above includes only the period during the 10-year bull market, and there’s no guarantee that the good times will continue.

But with dollar cost averaging, some of the guesswork involved in market timing is eliminated. Our own plan, which we call the ABC Investment Plan, automatically lets you purchase more shares when prices are low and fewer shares when they’re high.

The ABC Plan doesn’t assure a profit, of course, or fully protect against losses. No investment plan can guarantee those things.

Nevertheless, because it requires only a small initial investment, I think it’s a great way to get a young person started in today’s market. The Plan is also helpful for people who might be worried about their retirement goals but unsure how to build their wealth.

It’s never too late to start participating. Download an application today by clicking here.

The 10 Percent Golden Rule

I’d like to address a question I received over email last week from an investor. He asked for clarification on my 10 Percent Golden Rule. As you know, I often recommend a 10 percent weighting in gold, with 5 percent in physical gold and 5 percent in gold mining stocks.

“What does ‘weighting in gold’ actually mean?” he wrote. After explaining that he already owns a number of gold and silver coins, he asked how he knows if he has enough.

First of all, I think these are excellent questions.

The best way to show what I mean is with a visual. Below is a hypothetical portfolio of stocks, bonds, real estate, options, hard assets and more. To keep things simple, let’s say the total portfolio value is $1 million.

Using the 10 Percent Gold Rule, your total gold allocation would be valued at approximately $100,000, with $50,000 in physical gold (coins, bars and 24-karat jewelry) and the remaining $50,000 in gold mining equities, including mutual funds and ETFs.

the 10 percent golden rule in action
click to enlarge

Of course, asset prices are always fluctuating, which is why I also remind investors to rebalance their portfolios at least once a year. If gold shoots up in price, it might make sense to take some profits. If it plunges in price, consider it a buying opportunity.

The Fear Trade Is Heating Up Gold Mining Stocks

performance of an institutional portfolio with or without gold

As a reminder, there are a number of important reasons why the 10 percent rule might make sense.

For one, a certain amount of gold has been shown to improve a portfolio’s Sharpe ratio, or its risk-adjusted returns relative to its peers, based on standard deviation. The higher the ratio is over its peers, the better the risk-adjusted returns. One recent study found that an institutional portfolio with a 6 percent weighting in gold had a higher Sharpe ratio than one without any gold exposure.

This means that volatility was reduced without hurting returns.

Last week I gave you another reason.

Yields are sliding all over the world right now on concerns that the global economy is slowing. Here in the U.S., the 10-year Treasury yield ended the week at 2.41 percent, after President Donald Trump’s nominee for the Federal Reserve Board, Stephen Moore, said he was in favor of cutting interest rates half a percentage point.

With regard to our discussion here, gold has historically traded inversely to bond yields. When yields have fallen, the yellow metal has shined.

Gold mining stocks have behaved similarly. Take a look below. What the chart shows is the inverse relationship between gold mining stocks and the real 10-year Treasury yield—“real” meaning inflation-adjusted. As you can see, gold stocks soared in the summer of 2016 as yields deteriorated and finally dipped below zero.

the 10 percent golden rule in action
click to enlarge

Today, yields are similarly on a downward path, boosting gold stocks. From its 2019 low on January 22, the NYSE Arca Gold Miners Index is up more than 14 percent.

For more on gold stocks, watch my recent interview with Kitco News’ Daniela Cambone, live from the New York studio, by clicking here!

 

A program of regular investing doesn’t assure a profit or protect against loss in a declining market. You should evaluate your ability to continue in such a program in view of the possibility that you may have to redeem fund shares in periods of declining share prices as well as in periods of rising prices.

Sharpe ratio is a measure of risk-adjusted performance calculated by subtracting the risk-free rate from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns.

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies involved primarily in the mining for gold and silver.  The index benchmark value was 500.0 at the close of trading on December 20, 2002.

There is no guarantee that the issuers of any securities will declare dividends in the future or that, if declared, will remain at current levels or increase over time.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

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Gold Mining Stocks Are Surging on Global Economic Fears
March 26, 2019

Bond yields are crashing in major markets all around the world as fears of a global economic slowdown have prompted investors to seek shelter in low-risk government debt. Both Germany and Japan’s 10-year bond yields are back below zero, marking the first time we’ve seen German yields turn negative since October 2016. As I shared with you last week, the pool of negative-yielding bonds around the globe now stands at a post-2017 high of $9.32 trillion. Yields in Australia and New Zealand have also fallen to record lows, according to Bloomberg.

Germany and Japan 10-Year Bond Yields Are Back Below Zero
click to enlarge

The Yield Curve Just Inverted. Time to Get Defensive?

Here in the U.S., the yield on the 10-year Treasury has fallen to a more-than-one-year low on a dovish Federal Reserve. As you no doubt know by now, late last week, one very important part of the yield curve inverted for the first time since late 2006. On Tuesday morning, the 10-year Treasury was yielding 2.43 percent, compared to 2.46 percent for the 3-month Treasury—a small but meaningful spread of negative 3 basis points.

The Yield Curve Just Inverted for the First Time Since 2006
click to enlarge

A yield curve inversion indicates that investors are anticipating a rate cut in the near future, which itself is a possible sign that economic growth is slowing. As such, inversions have been among the most reliable forecasters of recessions—at least here in the U.S., where each of the past seven recessions were preceded by an inversion.

Gold Stocks Have Traded Inversely to Treasury Yields

Responding to this development, Morgan Stanley strategist Michael Wilson told CNBC this week that investors should “remain defensively positioned.”

One of the best defensive positions, I believe, is gold bullion and gold mining stocks, which in the past have traded inversely to yields. When yields have risen, indicating less demand for a safe haven, gold prices have sunk. And when yields have fallen, indicating a risk-off sentiment, gold prices have climbed.

Take a look below. What the chart shows is the inverse relationship between gold mining stocks and the real 10-year Treasury yield—“real” meaning inflation-adjusted. As you can see, gold stocks soared in the summer of 2016 as yields deteriorated and finally dipped below zero.

Gold Miners Have Risen in Low-Yield Environments
click to enlarge

Today, yields are similarly on a downward path, boosting gold stocks. Year-to-date through March 26, the NYSE Arca Gold Miners Index is up more than 10 percent.

But will yields turn negative? I can’t say for sure, of course. What I can say is that gold and gold mining stocks have historically been a good place to be positioned when economic fears pushed down bond yields.

This is why I always recommend a 10 percent weighting in gold, with 5 percent in physical gold and the other 5 percent in high-quality gold mining stocks and funds. I like to call this the 10 Percent Golden Rule, and in the past, it’s helped investors stanch some of the losses they’ve experienced during economic pullbacks and equity bear markets.

Unsure about how to get started? I recently appeared on Fox Business’ “Countdown to the Closing Bell” with Liz Claman and shared with her my top three gold stock picks. In case you missed it, you can watch the replay by clicking here!

 

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies involved primarily in the mining for gold and silver.  The index benchmark value was 500.0 at the close of trading on December 20, 2002.

A basis point, or bp, is a common unit of measure for interest rates and other percentages in finance. One basis point is equal to 1/100th of 1%, or 0.01% (0.0001).

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7 Market-Moving Charts Investors Need to See
March 25, 2019

Stocks erased their weekly gains and bond yields fell on Friday as investors reacted to a number of economic developments. Chief among them were a Treasury yield curve inversion, the first since before the financial crisis, and continued slowdown in the pace of U.S. manufacturing expansion.

I had my eye on several other market-moving news items, some of which I share with you below.

1. Palladium in Overbought Territory

The price of palladium briefly topped $1,600 an ounce for the first time ever last week on a widening supply-demand imbalance. Markets sent the metal higher on news that Russia, the world’s number one producer of palladium, was set to ban the export of scrap metal, which would have the effect of squeezing global supply even further. This comes a week after car manufacturers signaled an increase in demand for palladium, which is used in the production of pollution-scrubbing catalytic converters.

As such, the palladium-to-gold ratio—or the measure of how many ounces of gold can be purchased with one ounce of palladium—is now at an historical high.

Palladium historically overbought relative to gold
click to enlarge

2. Nickel Also Performing Well on Supply Deficit Concerns

Palladium is the best performing metal so far in 2019, up nearly 27 percent. In second place is nickel, which is facing supply issues of its own. Global demand for nickel in 2019 is estimated at around 2.4 million metric tons, two thirds of which will be processed in stainless steel mills, mostly in China, according to Reuters.

Palladium is the best performing metal so far in 2019
click to enlarge

3. Markets Grapple With First Yield Inversion Since Before the Financial Crisis

The yield on the 10-year Treasury fell to a more-than-one-year low last week on a dovish Federal Reserve. Fed Chair Jerome Powell indicated that interest rates were likely to stay unchanged throughout 2019 as officials assess the impact of a potential global economic slowdown. “Just as strong global growth was a tailwind,” Powell said, “weaker global growth can be a headwind to our economy.”

10 year treasury yields dipped to a 15 month low after wednesdays fed meeting
click to enlarge

On Friday, the yield curve between the three-month and 10-year yield inverted, or turned negative, for the first time since before the financial crisis. Although past performance does not guarantee future results, it’s worth noting that such an inversion has preceded every U.S. recession over the last 60 years.

4. Traders Don’t See Rates Changing

Even before Wednesday’s Fed announcement, a surging number of futures traders were betting that rates would stay unchanged, or even be lowered, between now and the end of 2019. Three quarters of traders this month were positive that rates would stay pat in the 2.25 percent to 2.50 percent range, up sharply from 26 percent of traders 12 months earlier, according to the CME Group’s FedWatch Tool. The probability that rates will be hiked by the end of the year are now at 0 percent.

Traders betting interest rates will hold or be lowered by the end of the year
click to enlarge

5. Pace of Manufacturing Growth Continues to Slow

The preliminary U.S. purchasing manager’s index (PMI), released on Friday, shows manufacturing growth slowing to a 21-month low, from 53 in February to 52.5 in March. “Softer business activity growth reflected more subdued demand conditions in March, with new work rising at the weakest pace since April 2017,” the IHS Markit report reads.

US manufacturing expansion estimated to fall to a 21 month low in March
click to enlarge

6. A “Substantial” Amount of Tariffs

Markets also appear to be coming to terms with the realization that tariffs could be the norm for a lot longer than anticipated. Last week President Donald Trump said that the U.S. would keep trade barriers on China-made imports in place for a “substantial period of time”—even after a deal is eventually reached.

The U.S. currently has tariffs on approximately $265 billion worth of Chinese goods. This resulted in an eye-opening $2.7 billion tax increase on American businesses in November 2018 alone, according to Census Bureau data. Companies, as you might expect, have largely passed these extra costs on to consumers.

And then there’s lost export revenue and jobs to consider. According to a report this month by IHS Markit, tariffs are estimated to have a negative impact on the U.S. economy over the next 10 years. Ramifications include suppression of hundreds of thousands of American jobs, a dramatic reduction in consumers’ real spending power and a loss in gross output in a number of industries. 

Estimated loss in gross output bny industry due to tariffs
click to enlarge

7. Fed Decides the Government Shutdown Wasn’t as Bad as All That

The good news is that on Friday the Atlanta Fed revised up its estimate for real U.S. gross domestic product (GDP) growth in the first quarter. It now stands at 1.2 percent quarter-over-quarter, up from an anemic 0.4 percent on March 13.

Palladium historically overbought relative to gold
click to enlarge

The new estimate still trails the Blue Chip consensus of top U.S. business economists. But it appears that Fed policymakers have determined that the government shutdown between December 22 and January 25 didn’t impact the U.S. economy as negatively as previously thought.

For even more timely market commentary, subscribe to our award-winning Investor Alert!

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link(s) above, you will be directed to a third-party website(s). U.S. Global Investors does not endorse all information supplied by this/these website(s) and is not responsible for its/their content.

The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

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The Retirement Crisis Is Much Worse Than You Think
March 20, 2019

Are you sitting down for this? According to a recent survey, one in five American adults have nothing saved for retirement or emergencies. A further 20 percent have squirreled away only 5 percent or less of their annual income to meet certain financial goals. Less than a third of all Americans have saved at least 11 percent or more.

One in five working Americans arent saving any money for retirement
click to enlarge

The survey, conducted by Bankrate in late February and early March, is just the latest indication that the U.S. faces a major retirement crisis. Every day, some 10,000 baby boomers turn 65, and they’re reaching retirement in worse financial shape than the previous generation for the first time since Harry Truman was president, according to a report by the Wall Street Journal.

The survey also raises the question of why some working-age adults haven’t been able to take full advantage of a booming U.S. economy and historic bull market to build wealth. Unemployment is near a 50-year low, and wage gains were at their highest level in a decade last month.

According to Bankrate, the number one reason (40 percent) why Americans aren’t saving is that they have too many other expenses. Sixteen percent said they “haven’t gotten around to it,” while the same percentage blamed the low quality of their job.

Indeed, not every employer provides access to a retirement plan such as a 401(k). A recent study by the National Institute on Retirement Security (NIRS) found that a little over half of working American adults have access to an employer-sponsored 401(k)-type plan. Only 40 percent actually participate.

As such, the median retirement account balance among all working-age Americans is—again, are you sitting down?—$0.00. That’s the median balance, remember, so half of all Americans have more than that. The other half, meanwhile, have even less than $0.00 to their name.

A Record $4 Trillion in Consumer Debt

That brings me to my next point. Interestingly, only 13 percent of those surveyed by Bankrate cited debt as the reason why they’re not saving as much as they should. I say “interesting” because total U.S. consumer debt, including revolving and non-revolving debt, now stands at more than $4 trillion, the most ever.

gold mining stocks still greatly undervalued relative to the market
click to enlarge

Debt affects us all, but it can seriously hinder workers’ ability to retire on time. The more you’re on the hook to pay lenders, the less you have to pay yourself.

Revolving debt, such as credit card debt, is now valued at more than $1 trillion, which exceeds the all-time high right before the financial crisis. And according to the Federal Reserve Bank of New York, people age 60 and older owe about a third of this total.

Non-revolving debt—auto loans, student loans, mortgages—is even worse. Student loan debt alone stands at an astronomical $1.5 trillion. It doesn’t help that, since the 1980s, the cost of college tuition has increased almost eight times faster than wages.

But if you think this burden belongs only to young people, you’re sorely mistaken. As many as 2.8 million Americans over the age of 60 are saddled with student debt, according to CNBC. Those over 50 owed more than $260 billion last year, up dramatically from $46 billion in 2006.

Confidence Lacking in Retirement Preparedness

All combined, it’s little wonder that a significant number of Americans feel some anxiety when it comes to their financial stability and retirement preparedness, despite a strong U.S. economy. A CFP Board survey conducted on Election Day 2018 found that less than a quarter of voting-age Americans were “completely confident” about their ability to navigate through economic ups and downs. Even less, 22 percent, felt the same about their ability to retire on time.

Large percentage of voting Americans lack financial confidence
click to enlarge

So what’s the solution?

Fund Your Financial Goals Affordably

I’ve heard from a number of people over the age of 50 who say they worry they haven’t adequately prepared for retirement, and yet are at a loss as to where to start. They want to build wealth fast but might have second thoughts about investing in the market.

I want to reassure those people that they need not put a significant amount in the market all at once, which for most people is impractical and risky. The truth is that they have options. One of the best, I think, is dollar cost averaging, which allows investors to fund their financial goals affordably.

In short, dollar cost averaging is an investing technique that lets investors add to an initial investment incrementally over time, usually once a month. That way, investors don’t break the bank, and as an added bonus, they don’t need to worry about market timing.

It’s a technique that has worked well for investors in the past. Take a look at the chart below. It shows a hypothetical initial investment of $1,000 in an S&P 500 Index in March 2009. Ten years later, after regular monthly contributions of only $100, the value of that initial investment grew at an annualized 12.96 percent to more than $26,385.  

The power of dollar cost averaging
click to enlarge

This is just an illustration. The past 10 years have been an exceptionally profitable time to invest, and there’s no guarantee that the good times will last.

Also, $26,000 won’t sustain anyone through retirement, but remember, we were using only a hypothetical $1,000. All else being equal, an initial investment of $10,000 in March 2009 would today be worth more than $64,766, for an impressive annualized return of 14.81 percent.

Sound enticing? The good news is that U.S. Global Investors provides investors the opportunity to invest with dollar cost averaging! We call it the ABC Investment Plan, and I’m very proud to give investors this option. Investment minimums are just $1,000 initially and then $100 a month. With the ABC Investment Plan, you get to choose the day of the month your investment is transferred from your checking or savings account to your investment account.

That way, some of the worry is eliminated from your retirement preparations or other financial goals.

Interested in the ABC Investment Plan? Get started today! Download the application by clicking here!

 

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link(s) above, you will be directed to a third-party website(s). U.S. Global Investors does not endorse all information supplied by this/these website(s) and is not responsible for its/their content.

You cannot invest directly in an index.

A program of regular investing doesn’t assure a profit or protect against loss in a declining market. You should evaluate your ability to continue in such a program in view of the possibility that you may have to redeem fund shares in periods of declining share prices as well as in periods of rising prices.

The S&P 500 Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.

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Gold Glimmers as the Pool of Negative-Yielding Debt Surges
March 18, 2019

Gold Glimmers as the Pool of Negative-Yielding Debt Surges

It was a tragic week, to say the least. It began with a fluke Ethiopian Airlines crash, which led to the grounding of all Boeing 737 MAX 8 jets worldwide, and ended with a hateful terrorist attack in Christchurch, New Zealand. On behalf of everyone at U.S. Global Investors, I want to extend my deepest sympathies to all those who were affected.

I’ll have more to say on airlines in a moment.

For now, I want to share with you a tweet by Lisa Abramowicz, a reporter for Bloomberg Radio and TV who often comments on the “fear” market.

“The pool of negative yielding debt has risen to a new post-2017 high of $9.2 trillion,” she writes. “Mind boggling at a time when the global economy is supposedly still recovering.”

Since Lisa tweeted this last Wednesday, the value of negative-yielding bonds has ticked up even more, to $9.32 trillion. This is still below the 2016 high of $12.2 trillion, but, as Lisa said, mind-boggling nonetheless. It also indicates that investors fear global economic growth is slowing.

The Pool of Negative-Yielding Bonds Has Climbed to a New High
click to enlarge

The yield on Japan’s 10-year government bond is back in negative territory, trading at negative 3 basis points (bps) today, while Germany’s was trading at a low, low 8 bps.

As I’ve explained to you before, low to negative-yielding debt has historically been constructive for gold prices. The yellow metal doesn’t have a yield, but in the past it’s been a tried-and-true store of value when other safe haven assets, such as government bonds, stopped paying you anything. In the case of Japanese bonds right now, investors are actually paying the government—and that’s before you factor in inflation.

This is just one of many reasons why I recommend a 10 percent weighting in gold, with 5 percent in physical bullion and jewelry, the other 5 percent in high-quality gold stocks and funds. Remember to rebalance at least once a year.

For more on gold, watch my interview last week with Daniela Cambone, live from Kitco’s New York studio! Click here!  

Aircraft Are Safer, Easier to Fly

Back to the Ethiopian flight. I’m confident we’ll soon learn what malfunctioned in the 737 MAX—both last week and in October during Indonesia’s Lion Air flight—so that accidents like this may never happen again.

Having said that, I think it’s important to keep in mind that commercial air travel today has never been safer in its approximately 100-year history. In 2017, the safest year for aviation on record, not a single life was lost in a commercial plane crash, despite more than 4 billion people around the world taking to the skies on scheduled passenger flights. You would be hard-pressed to find another major global industry, one that operates 24/7, with such an impressive safety track record.

Commercial Air Travel Has Never Been Safer
click to enlarge

This is all largely thanks to continuous improvements in aviation technology. Over the decades, aircraft have progressively gotten safer and easier to fly, according to one aeronautics professor at MIT.

“The automation systems that we have on airplanes have demonstrably made airplanes safer,” R. John Hansman, director of MIT’s International Center for Air Transportation, told Boston’s WBUR radio station last week.

And the technological advancements continue today, with artificial intelligence (AI) and the internet of things (IoT) already starting to change the way we fly.

Consider Aireon. Founded in 2011, the aerospace tech firm is responsible for developing a next-generation airline tracking and surveillance system that has the capacity to measure every aircraft’s speed, heading, altitude and position—all in real-time. Using as many as 66 satellites, Aireon’s team gathers data broadcast by tiny transponders, which all U.S. and European planes will be required to carry by next year.

Aireon diagram

It was the company’s data, in fact, that ultimately convinced the Federal Aviation Administration (FAA) to join the rest of the world in temporarily grounding the 737 MAX.

“Take a Ride on the Airline Stocks,” Writes the National Bank of Canada

In light of the accident, a number of research houses and brokerage firms released notes to investors reassuring them that Boeing’s troubles should have only minimal impact on the airline industry as a whole.

Shares of Boeing, the largest company in the Dow Jones Industrial Average by market cap, surged as much as 2.5 percent on Friday after it was announced that the jet manufacturer plans to roll out a software update for the MAX 8 and 9 within the next 10 days—much sooner than initially expected.

Analysts at Raymond James point out that the “737 MAX 8/9 aircraft are still a small part of overall fleet for most U.S. airlines, which in off-peak travel season can likely be covered by higher utilization of existing fleet or delays in certain aircraft retirements.”

Vertical Research’s Darryl Genovesi, an expert in airline revenue, says that he believes the 737 MAX grounding will have an “immaterial” effect on U.S. airlines’ first-quarter earnings per share (EPS). And if the grounding is extended into the second quarter, or into the second half of the year, we may even see higher EPS due to a supply demand imbalance.

Genovesi writes that Vertical’s models indicate that, in the event of an extended grounding, “system RASM [revenue per available seat mile] would increase by ~200 bps… This would be ~3 percent accretive to second-quarter EPS, on average, across the group including a ~9 percent EPS boost for Alaska Airlines, JetBlue and Spirit Airlines and low-single-digit boost for American Airlines, Delta Air Lines, United Continental and Allegiant Air, partially offset by a low-single-digit EPS reduction for Southwest Airlines.”

Southwest has the largest number of 737 MAX 8s in the world, with a reported 34 planes in its fleet.

Air Canada the Leading Carrier in the Country
click to enlarge

Finally, looking at the Canadian market, the National Bank of Canada says that both Air Canada and WestJet Airlines “remain constructive despite the recent turbulence.”

“The negative news has not changed the overall positive trend in [Air Canada’s] stock,” analyst Dennis Mark writes.

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All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Some links above may be directed to third-party websites. U.S. Global Investors does not endorse all information supplied by these websites and is not responsible for their content.

The Bloomberg Barclays Global Aggregate Negative Yielding Debt Market Value Index measures the stock of debt with yields below zero issued by governments, companies and mortgage providers around the world which are members of the Bloomberg Barclays Global Aggregate Bond Index.

Earnings per share (EPS) is the portion of a company's profit allocated to each share of common stock. Earnings per share serve as an indicator of a company's profitability.

A basis point one hundredth of one percent, used chiefly in expressing differences of interest rates.

Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of (12/31/2018): The Boeing Co., Alaska Air Group Inc., American Airlines Group Inc., Delta Air Lines Inc., United Continental Holdings Inc., Southwest Airlines Co., Spirit Airlines Inc., Allegiant Travel Co., JetBlue Airways Corp., Air Canada.

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Net Asset Value
as of 06/14/2019

Global Resources Fund PSPFX $4.43 No Change Gold and Precious Metals Fund USERX $7.21 -0.01 World Precious Minerals Fund UNWPX $2.66 0.02 China Region Fund USCOX $8.38 -0.06 Emerging Europe Fund EUROX $6.90 -0.02 All American Equity Fund GBTFX $24.23 -0.09 Holmes Macro Trends Fund MEGAX $16.59 -0.09 Near-Term Tax Free Fund NEARX $2.21 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change