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Please note: The Frank Talk articles listed below contain historical material. The data provided was current at the time of publication. For current information regarding any of the funds mentioned in these presentations, please visit the appropriate fund performance page.

This Might be Your Investment Adventure of a Lifetime
March 12, 2014

Did you know that over the past decade, Turkey’s economy has more than tripled? The country is a powerhouse in Europe: It is the largest commercial vehicle producer and the second largest steel manufacturer, according to the Republic of Turkey Prime Ministry.

While Turkey has been struggling lately, as the taper storm hammers the emerging European nation, we believe the latest correction could yield even more upside for investors.

When I visited the country this time last year, I was happy to see that the tacit knowledge learned on Turkish soil supported the explicit knowledge of this emerging country’s growth.

Turkey has a rich, diverse culture that is a blend of Asian, European and Middle Eastern traditions. Istanbul has been transformed into a country of affluence and among the beautiful Ottoman mosques, Byzantine churches, palaces and bazaars are ultra-contemporary art sculptures, shopping malls and lush landscaping.

As investment managers, we put a tremendous value on tacit knowledge because it strengthens our explicit knowledge. As St. Augustine once said, “The world is a book and those who do not travel only read one page.”

Now you have a unique opportunity to gain tacit knowledge by joining me on an investment adventure to this majestic country through Opportunity Travel.

Over 10 days in May, you can explore Europe’s fastest growing economy and learn all about the opportunities Turkey has to offer straight from the experts. See first-hand the breathtaking architecture and experience the rich, diverse culture.

Here’s a glance at the journey you can undertake:

Day Date Features Overnight
1 Mon, May 5 Arrival in Istanbul. Transfer to the hotel. Welcome reception and dinner at the hotel Istanbul
2 Tue, May 6 Full day tour including Bosphorus Bridge, Asian Side, Camlica Hill, Beylerbeyi Palace, back to Old Town, Hippodrome Square, Blue Mosque, St. Sophia Museum and Underground Cistern Istanbul
3 Wed, May 7 Half day meeting at the hotel with lunch. Afternoon visit Topakapi Palace, Grand Bazaar Istanbul
4 Thu, May 8 Half day meeting at the hotel with lunch. Afternoon visit Spice Market and cruise along the Bosphorus. Istanbul
5 Fri, May 9 Visit to a local company in Istanbul Istanbul
6 Sat, May 10 Transfer for the airport for morning flight to Kayseri. Afternoon visit the Underground City of Kaymakli and wine sampling experience Cappadocia
7 Sun, May 11 Visit Goreme Open Air Museum, Natural Citadel of Uchisar, Avanos (pottery making), Zelve, Red Valley, Pigeon and Babacik Valleys. After the dinner, visit "Whirling Dervishes" Ceremony of "Sema" Cappadocia
8 Mon, May 12 Before breakfast, optional "Hot Air Ballooning" excursion. After breakfast, drive to Ankara, visit the Mausoleum of Ataturk and The Museum of Anatolian Civilizations. Transfer to airport for flight to Izmir and to Kusadasi Kusadasi
9 Tue, May 13 Tour of the ancient city of Ephesus, The House of Virgin Marry, the Basilica of St. John, the Museum at Selcuk and Sirince Village Kusadasi
10 Wed, May 14 Visit a Gold Mine. Kusadasi
11 Thu, May 15 Drive Kusadasi / Bodrum. Visit Bodrum Castle, The Underwater Archeology Museum, Mausoleum of Halicarnassus.  Bodrum
12 Fri, May 16 Today we will enjoy a full day cruising by "Gullet" Bodrum
13 Sat, May 17 Transfer to Airport for flight back home or extend your stay to explore more on your own. Departure

If you prefer, there is a shorter version of the trip that takes you to Istanbul only on May 5 through May 10.

Join me on what could be the investment adventure of a lifetime. Space is very limited so you need to act now to claim your seat.

Click here to learn more and reserve your spot now or email our team at editor@usfunds.com.

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Going for the Gold
February 24, 2014

Everyone wants the gold. Around the world, athletes train for years to compete for a gold medal. In Hong Kong and China, the Love Trade seeks gold coins, bars and jewelry.

We found out this week the extent that gold is sought in the East. For the first time since 1980, Switzerland released monthly gold trade data, providing a more transparent picture of physical gold flows.

In January alone, the Swiss report showed an incredible 80 percent of gold shipments went to Asia.

Switzerland plays a key role in the gold market because it is home to many big gold refiners, so its report confirms what we’ve been saying about gold’s move out of the West to the strong hands of the East.

So even though the gold price fell in 2013, the smart money tuned into this flow of physical gold that was moving into the East. Meanwhile, naysayers were distracted by the Fear Trade’s selling out of gold ETFs.

“Gold flooding onto the market as a result [of large-scale ETF selling] was used to feed the voracious appetite for physical metal among consumers in India, China and numerous Asian and Middle Eastern markets,” says the World Gold Council in its latest report. You can see in the chart that gold demand reached record levels in the jewelry, bar and coin areas of the market last year. In fact, there was a 21 percent increase in demand from consumers, which was in contrast to the outflows from gold ETFs, per the WGC.

Gold Jewelry, Bar and Coin Demand Resilient in 2013
click to enlarge

Along with this continued demand in January, Daniela Cambone from Kitco and I discussed the factors that could drive gold to $1,400 an ounce. Find out what those are now.

Join us for our live webcast on March 5
We’re getting ready for our upcoming webcast on the “5 Reasons the Naysayers are Wrong about the Markets,” happening on March 5. Director of Research John Derrick and resources expert Brian Hicks will join me to share with you key strategies in following the smart money in gold, resources, emerging markets, the domestic market and bonds.

I invite you to register today and join us live. If you want to make sure we cover a specific topic, feel free to email us today at editor@usfunds.com.

5 Reasons the Naysayers are Wrong About the Markets

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.

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2013: Looking Back at the Year of the Bull
December 31, 2013

I’ve often said that trying to stop a bull market has risks. It was certainly precarious to think this year’s run would end anytime soon.

By December 27, the S&P 500 Index climbed an astounding 31.86 percent in 2013. We’re also pleased that shareholders in U.S. Global Investors’ All American Equity Fund (GBTFX) and Holmes Macro Trends Fund were along for the ride and more this year, as both funds outperformed their respective benchmarks. Check out their performance here.

Will stocks continue to climb in 2014? Odds are “very good,” finds BCA Research. According to historical data going back to 1870, there were 30 times when annual returns in domestic stocks climbed more than 25 percent. Of these, 23 experienced an additional increase, resulting in a mean of 12 percent, says BCA.

Thinking back to January 2013, investors had a very different frame of mind. While we recently talked about the year’s biggest stories in U.S. energy and gold, we want recap our popular commentaries focused on the domestic market.

Dow to 14,000 … And Beyond? (February 5, 2013)
After January saw the best month in two decades for U.S. stocks, I wrote how sentiment was slowly improving as many uncertainties had been removed from the market. I gave three reasons to stay positive on equities:

  1. U.S. businesses and households were deleveraging
  2. New home sales were expected to increase
  3. Inflation was low

Read the article.

Dow, Now and Then (March 12, 2013)
It wasn’t long before the Dow was hitting highs, yet with elevated unemployment, dysfunction in Washington and ongoing negative news about the U.S. economy, we noted that investors weren’t celebrating. There were plenty of reasons for that: In an infographic that was retweeted by Jim Cramer, we visually compared the Dow, then and now.

The Dow Then and Now

Don’t Sell in May: Here are Reasons to Extend Your Stay (May 6, 2013)
By the end of April, we noted that formerly weaker areas of the market were gaining strength. From April 24 through May 3, health care, consumer staples, utilities and telecommunications sectors lagged, while energy, industrial and materials stocks were nearly the best performing areas of the market.

This turned out to be a significant inflection point in the market, with cyclical stocks gaining strength over the next several months. Read the article here.

In Recent Days, U.S. Energy, Industrials, Materials Stocks Catch Up
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Don’t Miss This Golden Cross in Resources (November 4, 2013)
While investors were focused on the strengthening U.S. market, we noted improving indicators in other areas, including resources, Europe, and emerging markets. Notably, the global synchronized easing continued to take place along with improving purchasing manager’s index (PMI) number in many countries. Historically these factors bode well for commodities and commodity stocks. Read how you can “count on” PMIs here.

While many of these areas of the market were not as widely popular as U.S. stocks, we believed investors could benefit from being contrarian. Read the article now.

Positive Real Interest Rates Could Be a Headwind for Gold

As we wrap up the year, the benchmark 10-year Treasury note’s yield rose above 3 percent, touching the highest level in more than two years. An increase in bond yields can be both good and bad. According to ISI, a bad increase in bond yields is related to tapering concerns. A good increase in bond yields is related to the economy strengthening. “The two are intertwined, so it’s difficult to know which is dominating. However, judging by the S&P, a Good Increase currently has the upper hand,” says ISI. Our focus on global PMI numbers as early indicators of economic strengthening relates to this view.

The “good increase” in Treasury yields means a return to a positive real interest rate environment which is, historically, a headwind for gold prices.

What do you think will be the biggest stories in the new year? We’d like to know your predictions, questions and resolutions for 2014. Email us at editor@usfunds.com

We wish you a joyous, healthy and prosperous New Year!

Surprise Chart
click to enlarge

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

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

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The Dow Jones Industrial Average is a price-weighted average of 30 blue chip stocks that are generally leaders in their industry. 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.

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A Surprising Way to Participate in Today’s Tech Boom
December 23, 2013

If I asked you to name the biggest online shopping day of the year, what would you guess? Black Friday? Cyber Monday? Free Shipping Day in mid-December?

Guess again.

Even though Cyber Monday sales were spectacular this year, as online sales surged 20 percent and beat Black Friday receipts, the day didn’t top November 11, Singles’ Day in China. Singles’ Day is a day of celebration for people who are single and has become popular among the young in China.

China saw so many online purchases on this day that sales exceeded Black Friday and Cyber Monday online purchases in the U.S. In fact, sales on Singles’ Day were nearly double that on Black Friday and Cyber Monday. According to BCA Research, transactions processed through Alibaba totaled $5.75 billion on 11/11. Online sales on Black Friday and Cyber Monday together were only about $3 billion.

Emerging Market Cheap Stocks Cheapeast Since Asian Crisis of 1997-98
click to enlarge

Online transactions have grown so quickly in China over the past few years, the country may have surpassed the U.S. in becoming the largest e-commerce market in the world. The spectacular growth also “defies the widely held consensus of China’s perceived ‘weak’ consumption,” says BCA.

The Asian country has become one of the best consumption stories out there, and looking over the next few years, local technology companies are almost certain to benefit.

So while many U.S. investors are getting excited about the growing number of initial public offerings in the tech sector, they would be remiss if they didn’t look beyond Silicon Valley.

After all, the world has drastically changed since the last tech boom. Back then, China’s share of world GDP growth was in the single digits; now its share is close to 20 percent. Former state-run economies, such as China and Russia, are embracing an entrepreneurial spirit and markets are continuing to open up.

We’re especially excited about the opportunities that will likely develop from China’s removal of the hukou system that determines residency status and urbanization trends. In addition, as China changes its one-child policy, Internet companies may likely see an even larger increase of users in the years ahead.

Do They “Google” in China?
Americans may “Google” for directions, recipes or stock prices, post to Twitter, and shop online at Amazon or eBay, but outside the U.S., different tech leaders are finding lucrative and innovative ways to shape online experiences, grow revenue, and gain market share.

Baidu, for example, is the search engine leader in China with an 81 percent market share, significantly overshadowing Google, which has only a 12 percent revenue share, according to CLSA. The research firm anticipates Baidu will “sustain 35-40 percent revenue growth,” due to its monetization in search advertising, mobile games and mobile videos.

Competition is heating up though. When U.S. Global analyst Xian Liang visited his family in Shanghai this year, he noticed the Internet search page automatically populated to Qihoo (pronounced “chee-hoo”). Qihoo, which has only about 15 to 20 percent traffic share in China right now, bundles its own search engine along with its Internet security software. After installing the anti-virus software, the search engine becomes the default. The company is using this strategy to gain market share against heavy competitors such as Baidu and Google.

When purchasing goods online, most residents of China head to Alibaba, which processes about 80 percent of China’s total online retail businesses. It has a unique model with Amazon- and eBay-like features and hosts sites for small businesses. Its volume of sales is so massive, Alibaba may overtake Wal-Mart as the world’s largest retail network by 2016, according to CNBC.

As an “undisputed market leader,” Alibaba enjoys revenues that are growing 60 to 70 percent year-over-year, says CLSA. Yahoo! has benefited from its 24 percent stake in Alibaba, and next year, investors could get in on the action if the company goes public.

Michael Ding, portfolio manager of the China Region Fund (USCOX), likes Tencent Holdings, whose subsidiaries provide mass media, Internet and phone services, social media and online advertising. According to CLSA, Tencent is “best positioned for mobile,” due to its app called WeChat.

Users of Tencent’s phone applications may not be all too familiar with an app called SnapChat, but they are feverishly downloading a new app called WeChat. WeChat is a mobile social networking application that allows real time multi-party voice messaging and location sharing, boasting 236 million monthly active users.

Tech in Asia reported that Tencent is now set to open a WeChat office in the Philippines, saying that WeChat “became the most downloaded free app” in the country since June.

Emerging Market Cheap Stocks Cheapeast Since Asian Crisis of 1997-98
click to enlarge

Exploring Russia 2.0
Another area of the emerging world benefiting from the growing wealth of the consumer is Russia. In our recent webcast, Tim Steinle, portfolio manager of the Emerging Europe Fund, talked about investing in “Russia 2.0” companies. Whereas familiar Russian companies, such as Gazprom and Lukoil, tend to be large and state-owned, we prefer dynamic, independent, shareholder-driven companies.

For example, Mail.Ru is an Internet company focused on social networks and gaming.  Yandex is the dominant Internet portal in Russia in direct competition with Google.ru, the Russian operation of Google. Both companies have been outstanding performers compared to overall Russian stocks in 2013.

To learn more about why we find Russia 2.0 exciting, you can listen to the on-demand webcast here.

Wishing You a Happy Holiday!
During this holiday season, we would like to wish you and your family peace, joy and lots of laughter. We hope the new year brings you health, wealth and happiness.

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those of a less concentrated portfolio. The Emerging Europe Fund invests more than 25% of its investments in companies principally engaged in the oil & gas or banking industries. The risk of concentrating investments in this group of industries will make the fund more susceptible to risk in these industries than funds which do not concentrate their investments in an industry and may make the fund’s performance more volatile.

Holdings in the funds mentioned as a percentage of net assets as of 9/30/13: Amazon 0.0%, Baidu 0.0%, eBay 0.0%, Google 0.0%, Gazprom (Emerging Europe Fund 4.05%), Lukoil (Emerging Europe Fund 4.75%), Mail.Ru (Emerging Europe Fund 2.89%), Qihoo (China Region Fund 3.01%), Tencent (China Region Fund 3.51%), Twitter 0.0%, Wal-Mart 0.0%, Yandex (Emerging Europe Fund 1.95%), Yahoo! 0.0%

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The Secret Ingredient to an Indian Wedding
October 17, 2013

Shareholder Report 2013 Volume 3Something old, something new, something borrowed, something blue. Perhaps you’ve heard this old English saying about what items a bride must wear to have good luck on her wedding day. For brides in India however, not a single thing on that list would ensure a spectacular day. Instead an Indian bride desires one thing—gold.

At U.S. Global Investors we often reference the Love Trade and the Fear Trade when discussing gold. What’s important here is the Love Trade, characterized by the purchase of gold for festivals and holidays, and in the case of India, for weddings. Indians love gold, evident in the demand of the precious metal during wedding season. In fact, about half of the gold that Indians buy each year is for weddings.

As you’ll find out in our latest Shareholder Report, a luxury good such as gold is not uncommon to be gifted at Indian weddings, even with the recent regulations to slow imports of the valuable metal into the country. According to a recent story on Mineweb, India’s lust for gold simply cannot be dimmed by government clampdowns. “Heavy gold jewelry pieces from Italy, Switzerland, Dubai and Thailand have flooded the market, just in time for the festive season,” says Mineweb.

We believe the appeal for gold will continue to hold strong in the country. The Shareholder Report gives an in-depth look at Indian gold buying and explores other traditional gifts given at an Indian wedding.

Explore the full report here

 

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 their content.

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Net Asset Value
as of 09/25/2017

Global Resources Fund PSPFX $5.78 -0.04 Gold and Precious Metals Fund USERX $8.02 0.06 World Precious Minerals Fund UNWPX $6.69 0.06 China Region Fund USCOX $10.96 -0.46 Emerging Europe Fund EUROX $6.94 -0.06 All American Equity Fund GBTFX $24.34 0.10 Holmes Macro Trends Fund MEGAX $19.99 0.03 Near-Term Tax Free Fund NEARX $2.23 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change