Trump Succeeds at Pushing NATO to Spend Five Percent as New Arms Race Begins

Readers of a certain age will no doubt recall President Ronald Reagan launching one of the most ambitious military buildups in American history.

In a bid to overwhelm the Soviet Union, Reagan doubled the U.S. military’s budget from under $150 billion in 1980 to over $300 billion by 1985. The government invested heavily in B-1 bombers, MX missiles and an expanded Navy fleet. The Strategic Defense Initiative (SDI), dubbed “Star Wars” by critics, aimed to create a space-based missile defense system.

The 40th president believed that peace could only be achieved through strength, and history proved him right. The Americans outspent and out-innovated the Soviets… and ultimately outlasted them.

NATO Agrees to Increase Defense Spending

Today, we’re seeing Regan’s strategy play out on the international stage. At the NATO summit in The Hague this week, the 32-member alliance agreed to boost defense spending to 5% of GDP by 2035, with a floor of 3.5% earmarked for “core military needs.” That’s more than double the previous 2% target set back in 2014.

NATO Secretary-General Mark Rutte credited President Donald Trump with pushing allies to commit to a higher spending level. “This would not have happened” without Trump, Rutte said.

Trump echoed Reagan’s “peace through strength” energy in his own remarks: “It’s vital that this additional money be spent on very serious military hardware… and hopefully that hardware is going to be made in America because we have the best hardware in the world.”

Growing Number of Conflicts Across the Globe

It’s not difficult to see why this spending spree is happening now. The world is getting more dangerous.

According to the 2025 Global Peace Index, there are 59 active state-based conflicts globally, the highest number since World War II.

Ranked as this year’s least peaceful country, Russia remains an active military threat, with its war in Ukraine extending into a third year and showing few signs of resolution.

China is executing a “massive” military expansion, according to NATO, including advanced missile systems and naval expansion in the South China Sea.

And as you know, Iran recently retaliated against U.S. airstrikes with missile attacks on Al Udeid Air Base in Qatar, raising tensions in the Middle East.

NATO Allies Moving Fast

Some NATO countries aren’t waiting until 2035 to act. Poland is already spending over 4% of its GDP on defense, the highest rate among all other members.

Germany has pledged to reach 3.5% by 2029, even changing its constitutional debt rules to make it possible.

The UK just ordered a dozen nuclear-capable F-35A fighter jets, marking its biggest nuclear deterrent upgrade since the Cold War.

Here in the U.S., President Trump has proposed an $893 billion defense budget for 2026 that favors drones and smart missiles, while reducing some legacy investments such as warships and fighter jets.

He appears to be focused on high-tech, cost-effective equipment, modeled in part after Ukraine’s recent successes with drones on the battlefield.

Defense a “Dynamic Growth Industry”?

Defense has long been considered a “value sector”—slow and steady, backed by government contracts. That narrative could be changing.

According to analysts at Stifel, we’re entering a new cycle where defense is a “dynamic growth industry.” We’re now in an arms race driven not just by tanks and jets, but also AI, cyber, space and next-gen missiles.

Consider that U.S. defense budgets remain near record highs. Defense spending in Europe rose 17% year-over-year to $693 billion in 2024, before the new 5% NATO target became a reality.

Despite this, Europe is still overly reliant on American hardware and production capacity, according to findings by the Kiel Institute.

That, too, could spell opportunity. American defense companies—especially those focused on drones, missile systems, cybersecurity and space-based tech—stand to benefit the most from this multi-decade rearmament cycle.

For investors, I believe this marks the beginning of a long-term secular shift.

Interested in receiving information on investment opportunities in aerospace & defense? Send an email to info@usfunds.com with the subject line DEFENSE.

Index Summary

• The major market indices finished up this week. The Dow Jones Industrial Average gained 3.82%. The S&P 500 Stock Index rose 3.44%, while the Nasdaq Composite climbed 4.25%. The Russell 2000 small capitalization index gained 3.00% this week.
• The Hang Seng Composite gained 3.10% this week; while Taiwan was up 2.42% and the KOSPI rose 1.13%.
• The 10-year Treasury bond yield fell 10 basis points to 4.27%.

Airlines and Shipping

Strengths

• The best-performing airline stock for the week was Sabre, up 21.9%. According to TD, JetBlue is reportedly planning additional cost cuts to preserve cash and is expected to announce further network changes and leadership restructuring in the coming weeks.
• • According to Gene Seroka, Executive Director of the Port of Los Angeles, the port is operating at 70–75% effective capacity, with velocity at pre-COVID levels. He noted that inbound ships to Los Angeles and Long Beach matched the highest levels in three years, at 68 ships per day versus an average of 55 in April and 47 in May.
• According to Morgan Stanley, IndiGo’s traffic grew 6.8% year-over-year to 9.1 million, increasing its market share to 64.6%. Air India’s market share declined 70 basis points to 26.5%, while its load factor dropped 310 basis points to 80.2%.

Weaknesses

• The worst-performing airline stock for the week was Aena, but still up 0.5%. According to Bank of America, European airlines have limited available seat kilometers (ASK) exposure to the Middle East, but the one with the highest exposure is Wizz Air. The airline is highly vulnerable to negative developments in the region.
• Drewry is highlighting a major decline in container rates, citing a significant drop in demand and ample capacity on Asia–U.S. routes. “It is a sign that the recent surge in imports to the U.S., which occurred after the temporary halt of higher U.S. tariffs, will fail to have the lasting impact we had initially expected,” according to Drewry.
• King Power Duty Free submitted a letter to Airports of Thailand requesting discussions on the possible termination of its duty-free concession contracts across five major airports. The company cited several challenges, including the cessation of inbound duty-free shop operations, tax reductions on wine affecting sales volume, the reclamation of commercial space by AOT, and a slowdown in both tourist arrivals and the broader economy, according to Bank of America.

Opportunities

• Air Canada expects to purchase and pay for 26.6 million shares at a price of $18.80 per share under its share buyback offer, representing a total purchase price of $500 million and 8.24% of the total number of Air Canada’s outstanding shares prior to the offer taking effect.

• Goldman forecasts Japanese shipbuilders’ market share to rise to 10%/11%/12% in 2025–2027E, as the pricing environment continues to improve. This is supported by Japan’s structural workforce constraints and sustained global demand to replace aging vessels with newer, more energy-efficient ships as new emission controls take effect.
• According to TD, legacy carriers are scheduled to grow third-quarter 2025 capacity by 4.0% year-over-year, with domestic capacity up 3.4% and international up 4.8%. American Airlines is expected to see the most growth at LaGuardia (+21%) and Chicago (+15%). Delta Air Lines is expanding the most at Boston (+7%), while United Airlines is growing in Denver (+11%) and Southwest in Nashville (+13%).

Threats

• The trajectory of fuel prices remains a key concern for airlines following U.S. strikes on Iran’s nuclear facilities, explains TD. If fuel prices stay at or above current levels, airline shares are expected to remain under considerable pressure, with concerns now extending into 2026 forecasts.
• At least two supertankers made U-turns near the Strait of Hormuz following U.S. military strikes on Iran, according to ship tracking data, as more than a week of regional violence prompts vessels to speed up, pause, or alter their routes. Shipping rates for supertankers—each capable of carrying 2 million barrels of oil—have more than doubled in a week to over $60,000 per day, according to Reuters.
• As reported by Morgan Stanley, international airlines such as Emirates, Etihad Airways, and Lufthansa have canceled some routes to the Middle East. These suspensions follow Israel’s launch of “Operation Rising Lion,” which targeted Iranian nuclear and military sites, and Iran’s retaliatory missile strikes. The conflict has resulted in widespread airspace closures over Israel, Iran, Iraq, and Jordan.

Luxury Goods and International Markets

Strengths

• Global equities rebounded sharply after a ceasefire was announced between Israel and Iran, easing investor fears of a broader regional conflict. Markets across Asia, Europe, and the U.S. posted gains as geopolitical tensions subsided, boosting risk appetite. Travel and consumer discretionary stocks saw particularly strong gains, as the improved outlook supported expectations for increased tourism and consumer spending.
• In June, the Eurozone’s Services PMI (Purchasing Managers’ Index) rose to 50, signaling a return to stagnation in the services sector after a period of contraction. A PMI reading of 50 indicates no change in overall economic activity, with any value above this threshold suggesting expansion. The increase reflects slight stabilization in the Eurozone’s services sector, driven by improved demand and greater business confidence.
• Melco International, a Hong Kong casino and gaming company, was the top-performing stock in the S&P Global Luxury sector, rising 25.2% over the past five days. Melco’s shares rose more than 20% this week due to strong financial results, including a 23% revenue increase and narrowed losses, along with positive analyst upgrades.

Weaknesses

• LVMH has been one of the weakest performers in the S&P Global Luxury Index this year. While the broader index is up 1.8% year-to-date, LVMH shares have plunged nearly 21%. The sharp underperformance reflects weakening demand in key markets and mounting internal challenges.

• U.S. consumer confidence has recently weakened, with the June reading from the Conference Board falling unexpectedly by 5.4 points to 93.0—reversing nearly half of May’s gains. This decline was broad-based, reflecting not only consumers’ unease about current business and job conditions but also a more pessimistic outlook for the coming six months.
• Amorepacific, a residential and commercial property developer in Great Britain, was the worst-performing stock in the S&P Global Luxury Index, falling 9.2%. The shares declined mainly due to disappointing earnings and guidance, including weak performance in China and duty-free channels. Additionally, major broker downgrades—such as UBS and Goldman Sachs—cutting price targets amid concerns over slowing growth and margins further weighed on sentiment.

Opportunities         

• Tesla shares surged nearly 10% in a single day of trading on Monday following the highly anticipated launch of its Robotaxi service on June 22. Investors reacted positively to the company’s breakthrough in autonomous transportation, which is seen as a game-changer for both the electric vehicle and ride-hailing industries. The news sparked a wave of optimism, pushing Tesla’s stock price to new heights as analysts predicted massive long-term growth potential.
• Hilton will start offering luxury Nile River cruises in 2026 through its Waldorf Astoria brand. The cruises will travel between Luxor and Aswan, with stops at famous ancient sites like the Valley of the Kings. Guests will enjoy upscale suites, fine dining, and relaxing amenities on a five-deck ship. More hospitality brands are entering the cruise line business, and others are likely to follow this growing trend.
• Banking stocks are gaining momentum, with JPMorgan and Goldman Sachs both hitting all-time highs this week, signaling renewed investor confidence. Analyst Mike Mayo calls it “game on” for the sector, citing looser regulations, strong revenue growth, and better operating leverage. With stress tests and earnings coming up, JPMorgan and Goldman Sachs are leading a rally that could boost the entire banking sector.

Threats

• Rising oil prices could lead to a significant decline in revenue for cruise lines and airlines, as both industries heavily depend on fuel for operations. Higher fuel costs would force these companies either to absorb the increased expenses or pass them on to consumers through higher ticket prices. As a result, demand for travel could drop, especially among price-sensitive customers, leading to fewer bookings and a potential decline in overall revenue.
• Economic uncertainty, global unrest, and shifting cultural attitudes are pressuring the luxury sector, causing declining consumer demand. According to Bain & Company and Altagamma, the personal luxury goods segment is projected to contract by 2% to 5% in 2025, following a 1% decline last year.
• In the next few weeks, global equities could face increased volatility as key trade talks with the U.S. stall ahead of a July 9 deadline set by President Trump. Countries without deals may face much higher tariffs, raising trade tensions and market uncertainty. Only the UK has a partial agreement, while talks with others, like China, remain fragile—with China’s tariff negotiations extended into mid-August to allow more time for discussions.

Energy and Natural Resources

Strengths

• The best-performing commodity for the week was lumber, rising 10.25%. Lumber prices increased largely due to falling interest rates, driven by weaker economic news, including forward guidance reductions by several corporations and a surprise decline in personal consumption expenditures. These factors may prompt the Federal Reserve to reduce interest rates. Additionally, Canfor announced the permanent closure of two sawmills in South Carolina.
• Spot copper contracts on the London Metal Exchange jumped to a $55 premium over those expiring a day later, as a major squeeze on buyers showed few signs of easing. The so-called Tom/Next spread surged over the past week as buyers scrambled to secure dwindling inventories of copper in the LME’s global warehousing network, according to Bloomberg.

• China’s solar installations surged in May, setting a new monthly record as companies rushed to complete projects ahead of new rules that threaten to slash renewable power prices. The country installed 93 gigawatts of panels last month, according to data from the National Energy Administration, which is four times more than in the same period in 2024. To manage this influx of power, China is on track to launch a unified national power trading market by the end of the year, according to its main electricity grid operator. This system will allow power to be transported nationwide to meet demand where it is needed most.

Weaknesses

• The worst-performing commodity for the week was crude oil, dropping 11.78%. Global benchmark Brent initially surged as much as 5.7% to $81.40 per barrel in heavy trading the prior week due to the broadening conflict involving Israel and Iraq. However, prices quickly fell this week as concerns over immediate supply disruptions from the Middle East eased, following U.S. strikes on key Iranian nuclear sites.
• Cobalt prices spiked this week after the Democratic Republic of Congo (DRC) extended its export ban through September. The DRC stated that due to persistently high market inventories, the temporary export ban imposed on February 22 will be extended for an additional three months, effective immediately. Higher cobalt prices are increasing the likelihood of substitution with alternative battery chemistries—particularly lithium iron phosphate (LFP) batteries, which are expected to become the primary choice in the U.S. battery supply chain, as they already dominate in China.
• Global steel output declined by 2% month-over-month, with year-over-year output falling by 4%. The decline was largely driven by China, which posted a 7% year-over-year decrease, while the rest of the world (excluding China) remained flat. Growth in Brazil, India, the United States, and Vietnam was offset by declines in Europe, Russia, and Japan, according to Morgan Stanley.

Opportunities

• Linde signed a long-term deal with Blue Point Number One—a joint venture of CF Industries, JERA, and Mitsui & Co.—to supply oxygen and nitrogen for its 1.4 million metric ton low-carbon ammonia plant in Ascension Parish, Louisiana, according to Bloomberg.
• Ontario will host the world’s first service center for small modular nuclear reactors. GE Vernova Hitachi Nuclear Energy is investing C$70 million ($51 million) to build the facility near Toronto to support rising electricity demand, particularly from AI-driven industries, Bloomberg reports.
• China is promoting itself as a hub for global scientific and business collaboration. At the Summer Davos in Tianjin, Premier Li Qiang highlighted China’s push for international cooperation in tech and innovation, attended by 160 business leaders from over 30 countries, according to Bloomberg.

Threats

• China’s oil refiners are avoiding global crude markets due to price volatility and weak domestic demand, according to Bloomberg. LNG imports are also expected to fall for the eighth straight month in June—down about 12% year-over-year. Sluggish coal demand may reflect a broader shift toward clean energy.
• China’s coal surplus is driving up exports of excess cargo. About 2.5 million tons were exported in the first five months of 2025, 13% more than the same period last year. Japan, Indonesia, and South Korea were top destinations, with some shipments reaching as far as the Netherlands.
• China has ordered rare-earth companies to submit lists of technical staff to prevent trade secrets from leaking to foreign entities—reportedly even confiscating some passports, according to The Wall Street Journal. The move highlights the strategic importance of rare-earth materials in electronics, electric vehicles, and defense amid U.S.–China trade tensions.

Bitcoin and Digital Assets

Strengths

• Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Sei, rising 40.19%.
• A former Blackstone dealmaker and a co-founder of Tether Holdings are raising $1 billion for a listed crypto vehicle to hold a diversified mix of digital assets, including Bitcoin, Ether, and Solana. The fundraising effort is ongoing, and the details — including the $1 billion target — may change, reports Bloomberg.
• Circle’s post-IPO surge — as much as 750% since June 5 — signals strong investor enthusiasm and growing institutional appetite for stablecoins. With regulatory clarity emerging, a broader wave of companies is likely to join the ranks and issue their own stablecoins, especially traditional financial firms seeking to hedge against disruption, according to Bloomberg.

Weaknesses

• Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Curve DAO, down 12.61%.
• Shares of South Korea’s KakaoPay Corp, which had recently surged on investor excitement over its possible stablecoin foray, dropped as much as 17% as trading resumed after a one-day halt. The Korea Exchange suspended Thursday trading for the shares, saying the stock had been designated an “investment risk,” according to Bloomberg.
• Bitcoin slid below $100,000 for the first time since May after President Trump said U.S. bombers attacked Iran’s three main nuclear sites. Ether also sank sharply, falling as much as 10% to its lowest intraday level since May 8, with total liquidations of crypto bets over the last 24 hours exceeding $1 billion, writes Bloomberg.

Opportunities

• Grove is allocating $1 billion to a new CLO strategy from Janus Henderson Group Plc that will tokenize such securities on a blockchain, reports Bloomberg. The tokenized strategy allows investors in blockchain-enabled assets to buy into other financial products without leaving a blockchain network.
• Japan’s Metaplanet announced Tuesday that its board approved a $5 billion capital contribution to its wholly owned U.S. subsidiary. Last month, the company unveiled its U.S. unit in Miami. Metaplanet stated that it has completed the initial capitalization phase and is now in an aggressive expansion stage, writes Bloomberg.
• The San Antonio Spurs have signed a multi-year front-of-jersey patch deal with French digital assets firm Ledger SAS. The deal marks Ledger’s first partnership with a professional sports team and comes as the company seeks to grow its presence in the U.S. market. The agreement will see the Spurs and Ledger collaborate on digital asset education, with the Spurs’ CEO noting that it’s an exciting opportunity for fans, players, and staff to learn about crypto, according to Bloomberg.

Threats

• Stablecoins now account for most illicit activity on cryptocurrency ledgers, according to a report by the Financial Action Task Force. The report finds that illicit actors — including terrorists and drug traffickers — have increased their use of stablecoins since the task force’s last report on digital assets in 2024, writes Bloomberg.
• Shares of Bit Digital fell as much as 20% after the company announced an underpriced public share offering to raise $150 million for cryptocurrency accumulation. The New York-based digital assets firm is selling 75 million common shares at $2 apiece — a figure below its recent trading levels, writes Bloomberg.
• Upexi Inc.’s stock price fell 60% after investors filed to sell common shares, following the company’s pivot to accumulating the cryptocurrency Solana, according to Bloomberg.

Defense and Cybersecurity

Strengths

• The U.S. Army awarded Lockheed Martin a $4.5 billion contract to supply Patriot Advanced Capability-3 (PAC-3) missiles, including 870 PAC-3 MSE missiles and related hardware. Lockheed Martin also announced the formation of a subsidiary, Astris AI, to help U.S. defense companies incorporate artificial intelligence into their operations.
• Germany’s largest arms maker, Rheinmetall, and sensor provider, Hensoldt, are expected to benefit most from the country’s plan to boost defense spending to 3.5% of gross domestic product by 2029, according to BofA Securities analysts. They estimate that 40% of this spending—about 60 billion euros—will go toward procurement. At last week’s Paris Air Show, Rheinmetall and Hensoldt delivered consistent messages regarding German defense procurement, both anticipating orders starting in September.
• The best-performing stock in the XAR ETF this week was AeroVironment, which rose 45.73% after reporting a 40% increase in fourth quarter revenue to $275.1 million and adjusted earnings per share of $1.61, surpassing analyst expectations, amid strong demand for military drones and a growing backlog. The company also announced a $925 million acquisition of BlueHalo to enhance its defense technology capabilities.

Weaknesses

• The U.S. Department of Defense announced the cancellation of the Boeing E-7A Wedgetail program due to delays, rising costs, and concerns over survivability, opting instead for a space-based alternative and additional E-2D Advanced Hawkeyes.
• Intel announced it will shut down its automotive business and lay off most employees in the division, impacting around 50 million vehicles using Intel processors.
• The worst-performing stock in the XAR ETF this week was Cadre Holdings, down 3.16%, after CEO and 10% owner Warren B. Kanders sold 100,000 shares worth $3.35 million on June 18, 2025, according to a recent SEC filing. He retains control over 11.62 million shares in the company.

Opportunities

• Arista’s stock surged after KeyBanc initiated coverage with an Overweight rating, calling the recent pullback a rare buying opportunity. Demand from cloud giants like Meta and Microsoft is expected to rebound in 2025, while Arista positions itself as a key player in the $25 billion AI networking boom, as Ethernet replaces InfiniBand and hyperscalers expand GPU clusters that require Arista’s products.

• Taiwan’s cleanroom suppliers are seeing booming demand from global chipmakers like TSMC building fabs in the U.S., Japan, and Europe—providing tailwinds for industrial tech investors tied to semiconductor infrastructure.
• BAE, Leonardo, and a Japanese firm launched a joint venture called Edgewing to develop a next-generation combat aircraft by 2035, with EU-approved support and plans to operate the jet beyond 2070.

Threats

• Stephen Miller, President Trump’s deputy chief of staff, owns a significant financial stake in Palantir, raising conflict of interest concerns. However, he has confirmed he would recuse himself from official matters involving Palantir stock.
• Pakistan is reportedly developing a nuclear-capable ICBM with help from China that could reach the U.S., raising alarm in Washington and prompting Trump to warn Islamabad. Intelligence views this as a major strategic shift toward a multi-front nuclear threat.
• On June 26, Russia captured the Ukrainian village of Shevchenko, gaining control of one of Eastern Europe’s largest hard-rock lithium deposits, estimated at 1.2 million tonnes of Li₂O.

Gold Market

This week gold futures closed at $3,284.50, down $101.20 per ounce, or 2.99%. Gold stocks, as measured by the NYSE Arca Gold Miners Index, ended the week lower by 3.43%. The S&P/TSX Venture Index actually gained 1.84%. The U.S. Trade-Weighted Dollar fell 1.40%.

Strengths

• The best-performing precious metal for the week was palladium, up 8.78%, as it had significantly lagged the recent surge in platinum prices over the past six weeks. However, this is now contributing to strength in the palladium market. Auto manufacturers have been substituting platinum for palladium, but that trend could begin to reverse, with palladium now trading nearly $400 per ounce cheaper than platinum.
• Platinum has been on its biggest rally in 40 years, rising more than 38% since the end of May. Two major beneficiaries are Sibanye and Impala, whose platinum mining operations have pushed both stocks above their 50-day moving averages. This type of move highlights how the market values operational leverage to rising precious metal prices, a trend also seen in other PGM companies during rallies in their respective metals.

• Exchange-traded funds added 161,178 troy ounces of gold to their holdings in the last trading session, bringing this year’s net purchases to 7.53 million ounces, according to data compiled by Bloomberg. Total known ETF holdings of gold have climbed for nine consecutive days, the longest winning streak since April 21, before investors made net redemptions on Thursday, followed by net additions on Friday. With the strongest drop in the gold price this week, there appears to be renewed buying interest.

Weaknesses

• The worst-performing precious metal for the week was gold, down 2.99%, in response to the ceasefire in the Middle East and the prospects of new trade deals being announced. According to Raymond James, Mexico will not approve any new mining concessions. President Sheinbaum’s restriction on concessions marks a continuation of the policy set by her predecessor, former President Andrés Manuel López Obrador. “There is not going to be another new concession—no, there are no new mining concessions,” Sheinbaum said at a press conference.
• According to RBC, looking across all operating multiples today (i.e., P/CF, EV/EBITDA, FCF/EV, P/E), royalty companies are trading close to their average valuations across nearly all metrics over the past 10 years (i.e., within ~5%). Conversely, producer valuations have meaningfully compressed across all metrics and are trading at a 10–40% discount to 5-year average metrics.
• The cash-strapped government of Mali has announced that the state is working on restarting production at Barrick’s Loulo-Gounkoto gold complex. Barrick shuttered the mine when a court ruled the state could take over management for six months. The government now wants to keep the workers employed and produce gold to support the national economy.

Opportunities

• The head of one of the world’s most valuable gold miners believes there’s only one reason to buy a gold mining stock — and too few companies in the industry are offering it. “The only reason you want to buy an equity is if it gives you a better return than just buying gold,” Agnico Eagle Mines Ltd. CEO Ammar Al-Joundi said in an interview with Bloomberg.
• Gold prices could surge 20% by 2026, according to Bank of America — and geopolitical conflict isn’t the reason. BofA sees further upside driven by the “Big Beautiful” plan, which is expected to significantly increase the U.S. deficit in the coming years, reports Bloomberg.
• The U.S. Treasury has a new buyer of T-bills: stablecoins. Treasury Secretary Bessent said dollar-linked stablecoins could exceed $2 trillion, potentially boosting demand for short-term debt and the dollar’s global role — though concerns remain about handing over real dollars to largely unregulated issuers.

Threats

• Ecuador’s President Daniel Noboa aims to make the country “as predictable as possible” for investors. However, the government is starting talks this week on a controversial new mining fee that could raise $229 million annually—even from exploration companies—to boost the mining regulator’s budget. No final decision has been made, though the industry views the fee as a “shake-down,” said Deputy Mining Minister Javier Subia.
• Peru’s copper production faces growing threats from informal and illegal mining, which risks enabling criminal groups and encroaching on concessions. Proposed legislation (the MAPE Law) could legitimize informal miners, undermining formalization efforts. This has impacted companies like Southern Copper and First Quantum, putting billions at risk, according to Bloomberg.
• More than $15 billion of Chinese jeweler Laopu Gold Co.’s shares will be unlocked this Friday, potentially weighing on gold amid recent price weakness. The shares have surged over 2,000% since the company’s Hong Kong IPO a year ago, Bloomberg reports.

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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 (03/31/2025):

JetBlue Airways Corp.
Air Canada
Delta Air Lines
United Airlines
American Airlines
Southwest Airlines
Deutsche Lufthansa AG
Hilton
Goldman Sachs
Tesla
LVMH
Rheinmetall
Arista Networks
Impala Platinum
Barrick Gold Corp.
Agnico Eagle Mines

*The above-mentioned indices are not total returns. These returns reflect simple appreciation only and do not reflect dividend reinvestment.

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The S&P Global Luxury Index is comprised of 80 of the largest publicly traded companies engaged in the production or distribution of luxury goods or the provision of luxury services that meet specific investibility requirements.