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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.

Would You Do This to Pay Zero Income Taxes for Life?
February 21, 2019

Would You Do This to Pay Zero Income Taxes for Life?
Photo: Chris Tolworthy | Creative Commons Attribution 2.0 Generic (CC by 2.0)

Hungary has a problem. Like many Eastern European and former Soviet countries, its population is shrinking thanks to a plunging birthrate and outmigration as young workers seek better opportunities and fatter salaries elsewhere in the European Union (EU). In 2017, the most recent year of data, Hungary had a low fertility rate of only around 1.4 live births per woman, significantly lower than what is considered the replacement rate. If nothing changes, the country’s population is projected to shrink 15 percent by 2050, from almost 10 million strong today to 8.28 million, according to the United Nations (UN).

Hungary has one of the lowest fertility rates in the world
click to enlarge

This could have a number of negative economic and financial consequences. For one, the country could face serious demographic risk as its workforce is squeezed and the share of elderly, non-working citizens surges.

To be fair, Hungary isn’t alone. And it’s not even in the worst shape. According to UN data, the world’s top 10 countries with the fastest shrinking populations are disproportionately found in Eastern Europe. Bulgaria, the poorest EU member state, also has the ignoble distinction of ranking first in shrinkage velocity. By 2050, its population could contract as much as 23 percent—nearly a full quarter—followed closely by Latvia (22 percent) and Moldova (19 percent).

The reason why I’m focusing on Hungary is because I think policymakers there may have come up with an ingenious way to encourage young people to stay in the country, produce more children and grow the country’s labor workforce.

Interested in Paying No Income Taxes For Life? Start Making Babies

Hungarian Prime Minister Viktor OrbanPhoto: People's Party/Flickr | Creative Commons Attribution 2.0 Generic

The plan I’m referring to, dubbed the “Family Protection Action Plan,” was unveiled last week by Hungarian Prime Minister Viktor Orbán. Among its incentives is a waiver on personal income taxes for life for married women who give birth to and raise four or more children.

This could be huge.

Let’s look at what some eligible women could stand to save. Since 2016, Hungary has had a flat income tax rate of 15 percent. Admittedly, that’s lower than the 22 percent a single American making between $38,700 and $82,500 is obligated to pay in federal taxes. But as recently as 2010, all Hungarians were on the hook for as much as 40.6 percent—and there’s always the possibility that they could return to that level (or higher) at some later point.

For many women, a guarantee that they’ll never again have to pay income taxes in Hungary, at any rate, could be incentive enough to have that fourth child.

Other parts of the action plan include subsidies for some families to buy larger cars (presumably to carry all those extra children), a new loan program to help families with two or more children to buy homes, and childcare payments for grandparents who offer to look after grandkids during work hours.

“There are fewer and fewer children born in Europe. For the West, the solution is immigration,” Orbán, a nationalist, was reported as saying. “For every missing child, there should be one coming in and then the numbers will be fine.”

“But we do not need ‘numbers,’” he added. “We need Hungarian children.”

Hungary has been more resilient than the rest of emerging Europe
click to enlarge

Other European Nations Are Facing the Same Potential Crisis

You may disagree with Orbán’s solution to his country’s low birthrate—one Swedish minister has compared the policy to Nazi Germany—but he’s right in drawing attention to the fact that Europe, with few exceptions, is not producing enough children. In 2017, the EU had more deaths than births—5.3 million compared to 5.1 million, a deficit of around 200,000 people. The only reason the EU’s total population increased during the year, by 1.1 million people, was because of immigration.

Like Hungary, some EU members are looking at ways to encourage couples to start making more babies. In Italy—where only 464,000 births were registered in 2017, the lowest amount on record—policymakers are working on a plan to grant parcels of agricultural land to parents who have a third child between now and 2021. Poland’s government launched a multimedia campaign urging couples to “breed like rabbits.” And Spain appointed its own “sex tsar” to help give the country’s declining population a jolt.

Only time will tell whether these efforts can reverse the trend.

Finally, I invite you to take the quick poll below. Thanks in advance!

 

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

The Budapest Stock Exchange Index (BUX) is a capitalization-weighted index adjusted for free float. The index tracks the daily price only performance of large, actively traded shares on the Budapest Stock Exchange. The MSCI Emerging Markets Europe Index captures large and mid-cap representation across 6 Emerging Markets (EM) countries in Europe. With 73 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

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Will 2019 Be the Year of King Copper?
February 19, 2019

Summary

  • Corporate purchasing of copper-gobbling renewable energy more than doubled from 2017 to 2018.
  • Sales of electric vehicles, which use three to four times the amount of copper as traditional vehicles, are booming in China.
  • Copper miners get upgraded by the big banks.

Goldspot

Because of its wide availability and exceptional conductivity, copper is found in everything from consumer products to automobiles to semiconductors. Last year global demand for the red metal stood at 23.6 million tons, and by 2027, it’s projected to reach just under 30 million tons, representing an average annual growth rate of about 2.6 percent.

This phenomenal growth is attributable not just to the rise of middle class consumers. It’s also thanks to our steady rotation into clean, renewable energy such as wind and solar—which is good news for copper demand going forward.

As I’ve shared with you before, renewables require many more times the amount of copper as traditional energy sources. A typical wind farm—those that blanket whole areas of West Texas, California and some other states—can contain as much as 15 million tons of the metal.

2018 Was a Record-Breaking Year for Renewables

Whether you’re a believer in renewable energy or not, the tipping point may have already occurred. Among the fastest growing jobs in the U.S. right now are wind turbine service technician and solar panel installer, for whatever that’s worth. And according to a report by Bloomberg New Energy Finance (BNEF), corporate purchasing of renewable energy more than doubled from 2017 to 2018. Globally, companies bought 13.4 gigawatts (GW) last year, compared to the previous record of 6.1 gigawatts in 2017. Over 63 percent of the purchasing activity occurred right here in the U.S. Facebook alone was responsible for consuming 2.6 GW of renewables, three times as much as the next biggest corporate energy buyer, AT&T.

Global Corporate Clean Energy Buying Hit a New Record in 2018
click to enlarge

The trend toward renewables is expected to accelerate at a white-knuckle pace for years to come. Take a look at the chart below, courtesy of McKinsey’s “Global Energy Perspective 2019.” Analysts believe that, by 2035, renewable energy will account for more than half of all power generation as its price falls below that of coal and gas-generated energy. Fifteen years after that, nearly three quarters of total energy consumed around the world will be derived from renewable means, chiefly wind and solar.

Renewable Energy Projected to Account for Three Quarters of Global Power Generation
click to enlarge

If this is compelling at all to you, now might be an excellent time to start participating. One of the best ways, I believe, is with exposure to high-quality, well-managed copper miners as well as funds that have a large position in copper mining.

China Will Lead the Transition from Internal Combustion Engines to Electric Cars

And we haven’t even mentioned electric vehicles (EVs), which are notorious copper gobblers. As I’ve shared with you before, EVs consume between three and four times the amount of copper as traditional internal combustion engines.

China is leading the world in EV adoption and will likely continue to do so for some time. In the fourth quarter of last year, China was responsible for 60 percent of global EV sales, according to Bloomberg, which adds that the country holds half of all vehicle-charging infrastructure. By the end of last year, electric cars made up about 7 percent of total new vehicle sales in China, with a compound growth rate of 118 percent since 2011. In about a decade, the Asian country will account for nearly 40 percent of the global EV market, followed by Europe (26 percent) and the U.S. (20 percent), according to BNEF.

China leads the world in electric vehicle adoption
click to enlarge

Not only does China have national subsidies in place, but its carmakers are also incentivized to manufacture EVs thanks to the country’s “New Energy Vehicle” credit system. The system acts as an EV quota, requiring carmakers to generate credits through the sale of electric cars. According to BNEF, this is the “single most important piece of EV policy globally and is shaping automakers’ electrification plans.”

Adding to this acceleration is the fact that China has elevated the adoption of new “Phase 6” emissions standards under its anti-pollution “Blue Sky Defense” action plan. Just as we’re seeing in parts of Europe right now, China will soon begin banning the production of the most polluting diesel engines.

Many cities in China see the writing on the wall and have already enacted restrictions on gasoline-powered vehicle sales. In 2018, Shenzhen and Shanghai collectively led the world with more than 165,000 EV sales. That’s more than Norway and Germany combined.

With demand for EVs so high, it’s little wonder that China’s copper imports climbed to 479,000 tonnes in January, the second-highest on record.

Morgan Stanley Bullish on Copper, Upgrades Freeport-McMoRan

All of this leads me to believe that 2019 could be not only copper’s year but also copper miners’ year. The price of the red metal is up about 6 percent so far in 2019, trading at close to $2.80 a pound. That’s about 67 percent short of the metal’s all-time high of $4.62, set in February 2011.

Last week Morgan Stanley joined Citi and Goldman Sachs in making a bullish call on the metal. The investment bank projected a 14 percent upside for copper in 2019, based on a widening supply deficit and the likelihood of a resolution to the U.S.-China trade spat.

As for copper miners, Morgan Stanley upgraded Freeport-McMoRan, while Goldman Sachs recently upgraded Rio Tinto. Piyush Sood, lead analyst at Morgan Stanley, said in a note that Freeport’s “earnings sensitivity to copper is still the highest among its peers, and combined with its high trading liquidity, we believe it will emerge as the go-to large-cap stock for exposure to a copper price rally.” Shares of the Phoenix-based company’s stock jumped nearly 7 percent on the news last Wednesday.

Singapore-based DBS Bank also sees a copper shortage over the mid-term. Analysts expect supply to be in a deficit each year between now and at least 2022, when it could be at its widest since 2004.

Copper Price Projected to Rise on Widening Supply Deficit
click to enlarge

“Copper is king for this electrification trend taking over the global economy,” Matt Gilli, CEO of Nevada Copper, told Reuters. “We see demand increasing steadily in the years ahead and, so far, supply is not keeping up.”

To meet surging demand, four U.S. copper projects are set to open by next year, the first to do so in decades, according to Reuters. And Ivanhoe Mines, founded by my friend Robert Friedland, is in the process of developing the Kamoa-Kakula copper deposit in the Democratic Republic of Congo, which Robert describes as the second-largest copper mine in the world.

“You’re going to need a telescope to see copper prices in 2021,” Robert told us when he visited our office last year.

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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. 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.

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): Freeport-McMoRan Inc., Ivanhoe Mines Ltd., Citigroup Inc.

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Gold Love Trade Could Set New Valentine's Spending Record
February 12, 2019

Happy Chinese New Year 2019 the year of the pig

This Valentine’s Day might best be remembered for two things in particular. One, for the first time in 153 years, candy lovers won’t be able to pick up a box of Sweethearts, those classic heart-shaped candies bearing sweet nothings like “BE MINE” and “CRAZY 4 U.” And two, consumers are set to spend more than $20 billion on Valentine’s gifts for the first time ever, thanks in part to a surge in gold jewelry demand—specifically, yellow gold.

Regarding Sweethearts, they’ll be missing from store shelves this year because the candy’s manufacturer, Necco, sadly went bankrupt last May. But never fear! Its new owner, Spangler Candy Company—maker of Dum Dums lollipops—could bring them back as soon as next year.

As for Valentine’s Day spending, what I find interesting is that it continues to grow even as the number of people who admit to celebrating the holiday has been on the decline for years now, according to the National Retail Federation (NRF). It’s estimated that Americans will shell out an all-time high of $20.7 billion this year, easily topping the previous record of $19.7 billion set in 2016.

The increase in spending, I believe, can largely be attributed to the Love Trade, which is all about gold’s timeless role as a treasured gift. Of the $20.7 billion, an estimated 18 percent, or $3.9 billion, will be spent on jewelry alone, much of it featuring gold, silver and other precious metals and minerals.

Just take a look at the results of a recent WalletHub survey. When asked what kind of Valentine’s Day gift was “best,” most women said they preferred jewelry, beating out gift cards, flowers and chocolates. (Interestingly, a third of men said they preferred gift cards, with only 4 percent saying they thought jewelry was the “best” gift.)  

US China trade tariffs expected to divert trade to other countries
click to enlarge

Yellow Gold Gets a Royal Endorsement

But what kind of jewelry should you get your spouse or partner? You may have seen stories about how  yellow gold jewelry—as opposed to white and rose gold, not to mention silver and platinum—began to fall out of favor in the 1990s, the attitude being that it was “tacky” or “old fashioned.” Personally, I don’t believe it’s ever fallen out of fashion, but we have been seeing its popularity gain additional ground lately. Look no further than Menē, the revolutionary 24-karat jewelry company that’s disrupting the industry.

Prince Harry and Megan MarklePhoto: Mark Jones/Flickr | Attribution 2.0 Generic (CC BY 2.0) cropped from original

Much of the renewed interest in yellow gold jewelry is thanks to Prince Harry, who presented Meghan Markle with a gold engagement ring in late 2017. Speaking to the BBC, the prince said that choosing yellow gold was a no-brainer.

“The ring is obviously yellow gold because that’s [Meghan’s] favorite,” he said, adding that the inset diamonds are from his mother Princess Diana’s jewelry collection, “to make sure she’s with us on this crazy journey together.”

Industry experts are taking notice. Well-known designer Stephanie Gottlieb told “Brides” magazine in December that she was seeing  more and more requests for the yellow metal. “Our brides are turning to the same metal that graces their mothers’ engagement rings, but elevating it to take yellow gold from the 80s squarely into 2019,” Gottlieb said.

It should come as no surprise, then, that Google searches for “gold jewelry” surged to an 11-year high this past December.

US China trade tariffs expected to divert trade to other countries
click to enlarge

What’s more, gold jewelry demand in the U.S. rose to a nine-year high in 2018, according to the World Gold Council (WGC). Americans bought as much as 128.4 tonnes during the year, up 4 percent from 2017, while fourth-quarter demand of 48.1 tonnes was the highest since 2009.

A Gift That Doubles as an Investment

Ideally you’re buying jewelry for a loved one this Valentine’s because it looks great on and makes them happy. But when I buy gold jewelry in particular, it helps to know that the piece doubles as an investment. Unlike some other costly gifts, gold jewelry will hold its value for many years to come. In a recent presentation, Menē points out that a 50-gram gold bracelet purchased 20 years ago for $500 would have outperformed both the S&P 500 Index and the U.S. dollar. That same bracelet, Menē says, would today be worth around $2,000.

Happy Valentine’s Day, and if you’re interested in learning more about the gold Love Trade, download my free whitepaper 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.

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

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: Menē Inc.

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This AI Company Is the Future of Gold Exploration
February 11, 2019

 

Goldspot

Gold mining is one of the very oldest human occupations. The earliest known underground gold mine, in what is now the country of Georgia, dates back at least 5,000 years, when people were just starting to develop written language.

Over the centuries, a number of innovations have emerged that disrupted and forever changed how we explore and mine for gold and other metals. Think dynamite, or the steam engine.

Lately, however, innovation has slowed. Mining companies are in cost-cutting mode, and many producers have favored generating short-term cash flow, often to the detriment of longer-term value. In last year’s “Tracking the Trends” report, Deloitte analysts observed that “miners from 50 years ago would find little has changed if they entered today’s mines, a situation that certainly doesn’t hold true in other industries.”

Mining has consistently underspent in innovation relative to other industries
click to enlarge

Consider the earth-shattering change that’s taken place in oil and gas over the past two decades. Fracking and horizontal drilling have completely revolutionized how we extract resources from the ground, making hard-to-reach oil and natural gas accessible for the first time.

No equivalent technology exists in precious metals. Some companies are now using cutting-edge technology like blockchain to improve supply chain efficiency and transparency, but to date there’s no “gold fracking” method. As a result, metal ore grades are decreasing, and large-scale gold discoveries are becoming fewer and farther between.

One company thinks it has the formula to reverse this trend. I think it could be sitting on a gold mine, pun fully intended.

Meet Goldspot Discoveries

“Some people call it ‘peak gold,’ but I tend to think of it more as ‘peak discovery,’” says Denis Laviolette, the brains behind Goldspot Discoveries, a first-of-its-kind quant shop that aims to use artificial intelligence (AI) and machine learning to revolutionize the mineral exploration business.

A geologist by trade, Denis conceived of Goldspot while serving as a mining analyst with investment banking firm Pinetree Capital. His vision, as he described it to me last week, was to disrupt mineral exploration as profoundly as Amazon disrupted retail and Uber the taxi business.

Central Banks Haven't Bought This Much Gold Since Nixon Was President

“We have more data at our fingertips than ever before, yet new discoveries have been on the decline despite ever increasing exploration spending on data collection,” Denis continues. “We believe Goldpsot can change that. Harnessing a mountain’s worth of historic and current global mining data, AI can identify patterns necessary to fingerprint geophysical, geochemical, lithological and structural traits that correlate to mineralization. Advances in AI, cloud computing, open source algorithms, machine learning and other technologies have made it possible for us to aggregate all this data and accurately target where the best spots to explore are.”

Hence the name Goldspot—though I should point out that Denis considers the Montreal-based company “commodity agnostic,” meaning it collects and aggregates data for all metals, including base metals, not just gold.

Moneyball for Mining

Denis has the record to back up his extraordinary claims. In 2016, Goldspot took second place in the Integra Gold Rush Challenge, a competition with as many as 4,600 worldwide applicants. After consolidating more than 30 years of historical mining and exploration data into a 3D geological model, the company was able to identify several target zones with the highest potential for gold mineralization in Nevada’s Jerritt Canyon district, among several others.

Moneyball

Goldspot’s targeting approach was a complete success. New zones were discovered by AI, validating the company’s models of finding patterns in the data that humans alone couldn’t have seen.

The exercise stands as an example of what can be unlocked when machine learning is applied to geoscience.

“When I first entered the field, geologists were still using pen and paper, and I’m not even that old,” Denis says. “We were paying for all this data, but no one was really doing anything with it.”

 

Denis’ quant approach to discovery reminds me a lot of Billy Beane, the former general manager of the Oakland A’s and subject of the 2003 bestseller and 2011 film Moneyball. Beane was among the first in sports to pick players, many of them overlooked and undervalued, based on quantitative analysis. His strategy worked better than anyone anticipated.

Although the A’s had one of the lowest combined salaries in Major League Baseball—only the Washington Nationals and Tampa Bay Rays had lower salaries—the team finished the 2002 season first in the American League West.

Similarly, Goldspot seeks to help mining companies cut some of the costs and risks associated with discovering high-quality deposits—something it’s managed to do for a number of its clients and partners, including Hochschild Mining, McEwen Mining and Yamana Gold.

And speaking of teams, Denis has assembled an impressive roster of PhDs and experts in geology, physics, data science and other fields.

But Wait, There’s More…

The company, not yet three years old, does more than assist in exploration. It also invests in and acquires royalties from exploration companies, similar to the business model practiced by successful firms such as Franco-Nevada, Wheaton Precious Minerals, Royal Gold and others.>

The difference, though, is that Goldspot has developed an AI-powered screening platform to identify the very best and potentially most profitable investment opportunities.

For this, Goldspot has also received accolades. It was one of only five finalists in Goldcorp’s 2017 #DisruptMining challenge, for “revolutionizing the investment decision model by using the Goldspot Algorithm to stake acreage, acquire projects and royalties, and invest in public vehicles to create a portfolio of assets with the greatest reward to risk ratio.”

I’ll certainly have more to say about Goldspot in the coming weeks. For now, I’m excited to share with you that the company is scheduled to begin trading on the TSX Venture Exchange early this week. The future belongs to those that can mine data and harness the power of AI, and I’m convinced that what Denis and his partners have created fits that bill. Congratulations, and the best of luck to Denis Laviolette and Goldspot Discoveries!

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

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): Integra Resources Corp., Hochschild Mining PLC, McEwen Mining Inc., Yamana Gold Inc., Franco-Nevada Corp., Wheaton Precious Metals Corp., Royal Gold Inc.

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Will the China Bulls Turn Out for the Year of the Pig?
February 5, 2019

Happy Chinese New Year 2019 the year of the pig

Happy Year of the Pig! This week marks the start of China’s Spring Festival, during which an estimated 3 billion trips will be made using the country’s massive transportation network of roads and rail. That figure is a slight rise from the same period last year, despite slowing economic growth prompted by trade tensions with the U.S. and a strengthening dollar.

Ctrip, China’s largest online travel agency, forecasts that more than 400 million people will travel across the country for family reunions, while some 7 million will go abroad.

To prepare for the additional travel demand, China built as many as 10 new railways at the end of last year and expanded the length of its high-speed rail system to 29,000 kilometers, or around 18,000 miles. Meanwhile, the Civil Aviation Administration of China (CAAC) expects more than 532,000 flights to be scheduled during the week-long travel rush, a 12 percent increase from last year, according to China Daily.

China has nearly 220 billion dollars in new infrastructure projects since the start of 2018

Since the start of 2018, the National Development and Reform Commission (NDRC), China’s top economic planner, has approved 27 large-scale infrastructure projects, totaling nearly $220 billion. Among the largest is the expansion of the Shanghai Metro, already the world’s largest transit system by route length. The $44 billion project, to be completed by 2023, will add six new subway lines and three intercity railways. 

Looking for a Resolution to the Trade Dispute

If you’ve been paying attention, you might have noticed that much of the news involving China right now is negative. Its manufacturing sector is slowing, and economic growth in 2018 was at a nearly-30-year low.

I believe this is only a temporary lull as we await a resolution to the U.S.-China trade war and a fall in the U.S. dollar, which has made American goods more expensive to its trade partners. So I remain bullish on China and the surrounding region, and I believe now might be an advantageous time to gain exposure.

The U.S. and China reportedly made “tremendous progress” during last week’s high-stakes talks between President Donald Trump and China’s Vice Premier Liu He. Although technology and intellectual property rights remain sticking points, China is slated to “substantially” increase its purchases of U.S. crops, energy and services.

Case in point: Just two days after the January 31 talks, Chinese state-run agricultural conglomerate COFCO Group and Sinograin reported purchasing at least 1 million tons each of American soybeans. This marked the Asian country’s first order of soybeans from the U.S. since summer of last year, when purchases were halted as a result of escalating trade tariffs.

Official White House photo

The good news here is that the U.S. and China appear to be working toward a resolution. Official Chinese outlets called the talks candid, specific and fruitful. President Trump affirmed that, although “much work remains to be done,” progress is being made.

Looking ahead, Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer will meet at least once with Chinese President Xi Jinping sometime later this month. And Trump is reportedly considering planning a meeting with Chinese President Xi Jinping, possibly near the time of the summit with North Korea’s Kim Jong Un.

Ongoing U.S.-China Tension Expected to Divert Trade to the European Union

I’m confident that a resolution will come sooner rather than later, as neither side has anything to gain from continued trade hostility. In fact, they have much to lose. This week, the United Nations Conference on Trade and Development (UNCTD) estimated that the tariffs imposed by Washington and Beijing will do very little to protect the respective economies, and that a majority of the bilateral trade will instead be diverted to firms in other countries, most of them European. Those in Mexico, Japan and Canada would also stand to benefit.

US China trade tariffs expected to divert trade to other countries
click to enlarge

“Overall, European Union exports are those likely to increase the most, capturing about $70 billion of the United States-China bilateral trade—$50 billion of Chinese exports to the U.S., and $20 billion of U.S. exports to China,” the report reads.

I think it’s safe to say that neither China nor the U.S. wants this, which drives me to believe that we’ll see a satisfactory resolution in the coming weeks. Hopefully then China’s manufacturing sector and gross domestic product (GDP) growth can recover.

How to Gain Exposure to China and the Surrounding Region

An excellent way to participate, I believe, is with our China Region Fund (USCOX), which provides investors access to one of the world’s fastest growing regions.  

China and the surrounding region has experienced many changes since USCOX opened in 1994, but we believe the region continues to hold further investment opportunities. Many Asian countries possess characteristics similar to the U.S. prior to the industrial revolution: a thriving, young workforce; migration from rural to urban areas; and shifting sentiment toward consumption.

Curious to learn more? Explore and discover the China Region Fund (USCOX) today by clicking here!

 

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.

Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those of a less concentrated portfolio.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the China Region Fund as a percentage of net assets as of 12/31/2018: Ctrip.com International Ltd. 0.00%, COFCO Group 0.00%, Sinograin Oils Corp. 0.00%.

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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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