Global Growth and Gold Miners

Author: USGI
Date Posted: February 24, 2016 Read time: 3 min

In a recent interview with Angela Harmantas of SmallCapPower, Frank Holmes discusses a macro view of the global markets and pinpoints what he believes investors should be paying attention to.

In a recent interview with Angela Harmantas of SmallCapPower, Frank Holmes discusses a macro view of the global markets and pinpoints what he believes investors should be paying attention to. Frank says that while GDP is a measurement that helps us “look in the rearview mirror,” what’s truly important is looking ahead by focusing on purchasing managers’ index (PMI) data. From the U.S. to China, he says this piece of data indicates whether economies around the world will experience growth, or continue to slow – the key is to see a reading of 50, along with the one-month PMI reading crossing above the three-month trend line. When this happens, Frank says it is good for commodities like oil and copper.

Frank also discusses gold’s performance so far in 2016, and touches on what gold miners are up to in the U.S. and Canada, specifically if we might see more takeovers this year. Tune in to the full interview!

 

Past performance does not guarantee future results. All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. 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.

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

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.

Standard deviation 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.

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).

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.

Smart beta refers to investment strategies that emphasize the use of alternative weighting schemes to traditional market capitalization based indices.

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 accounts managed by U.S. Global Investors as of 12/31/2015: Newmont Mining Corp., Starbucks Corp.