Commodity Investors: Pay Attention to PMI

Author: USGI
Date Posted: February 5, 2015 Read time: 2 min


The team at Market One Media Group took some time to speak with Frank Holmes at the recent Vancouver Resource Investment Conference about what he believes investors should focus on in 2015. Frank says that for commodity investors specifically, one significant data point to follow is the manufacturing purchasing managers’ index (PMI). Unlike GDP numbers which take a backward-looking approach to what makes the market tick, PMI has historically been a precursor for commodity demand looking forward.

Although it’s often tempting to listen to the “politically-motivated talking heads” when trying to grasp where the economy is headed, Frank thinks using this global indicator and following the money is a much better way to make sense of what’s going on around the world.

 

Click here to watch the full interview.

 

 

Have you had a chance to tune into Kitco’s Gold Game Film with Frank Holmes? Each Monday Frank gives his touchdown pass of the week for the yellow metal. You can watch the latest episode here along with all the replays on our website www.usfunds.com.

 

Wath the replay of Kitco's gold Game Film with Frank Holmes!

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Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the interview were held by one or more of U.S. Global Investors Funds as of 12/31/2015: Facebook Inc., Goldcorp Inc.

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.

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

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