Commodities Are Undervalued, Says Sam Pelaez

Sam Pelaez, chief investment officer at Galileo Global Equity Advisors, spoke with SmallCapPower about why he believes commodities are attractive right now. Sam explains how commodities are undervalued compared to equities and that oil prices in particular are rallying. Sam also digs into the gold and silver ratio and how now might be the time to invest in both metals.

For the full story, watch the interview below!

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The S&P 500 is a stock market index that tracks the stocks of 500 large-cap U.S. companies. It represents the stock market’s performance by reporting the risks and returns of the biggest companies.

The Purchasing Manager’s Index (PMI) 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.

The S&P GSCI (formerly the Goldman Sachs Commodity Index) serves as a benchmark for investment in the commodity markets and as a measure of commodity performance over time.

Free cash flow yield is an overall return evaluation ratio of a stock, which standardizes the free cash flow per share a company is expected to earn against its market share price.

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 (3/31/2018): Silvercorp Metals Inc.

U.S. Global Investors owns 65% interest in Galileo Global Equity Advisors.