Frank Holmes: The Future of Interest Rates and Gold

Marc Lichtenfeld, host of Oxford Club Radio, welcomes Frank Holmes back to the program to discuss the Federal Reserve and interest rates. Frank says he thinks it will be hard for the Fed to raise rates with global growth contracting, noting that the U.S. needs to see the dollar realign itself to a lower level in order to remain competitive.

Frank also discusses the importance of the Trans-Pacific Partnership (TPP) trade pact signed last week. He says the TPP is very significant because 12 participating countries make up 40 percent of the global economy. Once this starts to unfold, there will be a boom according to Frank, allowing the Fed to then take action.

Tune-in to the full interview to hear Frank’s thoughts on gold and the municipal bond market as well.

Click here to listen to the interview!

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 above, you will be directed to a third-party website. U.S. Global Investors does not endorse all information supplied by this website and is not responsible for its content. This news release may include certain “forward-looking statements” including statements relating to revenues, expenses, and expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.

Though the Near-Term Tax Free Fund seeks minimal fluctuations in share price, it is subject to the risk that the credit quality of a portfolio holding could decline, as well as risk related to changes in the economic conditions of a state, region or issuer. These risks could cause the fund’s share price to decline. Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local taxes and at times the alternative minimum tax. The Near-Term Tax Free Fund may invest up to 20% of its assets in securities that pay taxable interest. Income or fund distributions attributable to capital gains are usually subject to both state and federal income taxes.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. Holdings in the Near-Term Tax Free Fund as a percentage of net assets as of 09/30/2015: Airbus 0.00%, The Boeing Co 0.00%.

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

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.

M2 Money Supply is a broad measure of money supply that includes M1 in addition to all time-related deposits, savings deposits, and non-institutional money-market funds.

Standard deviation (sigma) is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility.