Share this page with your friends:

Print

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.

Is Weak Productivity to Blame for Sluggish Consumer Spending?
October 24, 2016

Hillary Clinton plans to raise your taxes. are you invested in tax-free munis?

Last week I presented at the MoneyShow in Dallas, where sentiment toward gold was a bit muted compared to other recent conferences I’ve attended. The yellow metal has certainly taken a breather following its phenomenal first half of the year, but the drivers are still firmly in place for another rally: low to negative government bond yields; economic and geopolitical uncertainty; and a lack of faith in global monetary policy.

I want to thank my friend Kim Githler for hosting the MoneyShow. Every year since she founded the event in 1981, she’s captivated audiences with her intelligence, sharp wit and honesty.

One of the highlights of the event was listening to American economist Art Laffer, whose “Laffer curve” shows that the government can actually bring in more revenue if tax rates are kept low. Art’s theory was used as the basis for President Ronald Reagan’s free-trade, low-tax policies. Later, Art actually supported Bill Clinton because he was willing to streamline taxes and regulations.

The same cannot, I’m afraid, be said of his wife Hillary, who plans to raise taxes at nearly every level.

Hillary Clinton vs. Donald Trump's Tax Plans
click to enlarge

Although bad for your pocketbook and savings, the possibility of higher taxes is expected to increase interest in tax-free municipal bonds, especially among top earners. For over a year now, muni bond funds have seen positive weekly inflows, with $147 million going in during the week ended October 17. I expect this trend to continue as we head closer to the election, and beyond.

The Republicans at the event, meanwhile, were almost unanimously disappointed in their candidate Donald Trump. Many of the grievances had to do with his inability to stay on message. If he would simply stick to key issues such as public safety, immigration and minimizing taxes and regulations, he might have a clear shot at the presidency. Instead, he too easily walks into personal traps set by the media and the Clinton campaign.

 

Where’s the Retail Spending?

 

Maybe you haven’t heard yet, but you got a raise in 2015 without even realizing it. At least, that’s what the Census Bureau revealed last month. U.S. household income rose 5.2 percent, the fastest on record.

U.S. Middle-Class Households Got a Huge Raise in 2015
click to enlarge

This falls in line with other recent news that appears to show that the U.S. economy is humming once again, nearly a decade after the 2007-2008 financial crisis.

With unemployment at 5 percent, initial jobless claims fell to a four-decade low this month, while the labor-force participation rate—the share of working-age Americans who are working or actively seeking work—has finally begun to perk up. Also improving is the voluntary quits rate, which indicates workers now have enough confidence in the labor market to walk away from their current jobs and quickly find new ones.

As encouraging as this all is, I have to look at the consumer discretionary sector and wonder why we’re not seeing healthier consumption. (This is important, as spending accounts for roughly two-thirds of gross domestic product.) If more Americans have better-paying jobs, as the data seem to indicate, and they’re feeling good about parting with their money, why aren’t retail sales surging?

Instead, sales growth, excluding food services, has steadily been weakening. E-commerce sales growth looks strong, but the entire industry can’t be propped up by Amazon alone.

U.S. Retail Sales Growth Has Stagnated
click to enlarge

Confirming this is Bank of America Merrill Lynch’s latest report on debit and credit card spending, which showed a “substantial slowdown” in retail sales, ex-autos, in September, according to Zero Hedge.

Despite the release of the iPhone 7 in September, BofAML didn’t see “a spike in electronic store sales akin to prior releases of Apple devices. It may be a reflection of the iPhone 7 or perhaps the trend in electronic store sales ex-iPhone is sluggish.”

The bank raises a couple of good points here. Apple’s latest smartphone was met with criticism stemming from its lack of a headphone jack, which might have dissuaded some consumers from upgrading.

And as many others have pointed out, it’s possible we’ve finally reached “iPhone fatigue.” Most everyone now owns a satisfactory smartphone—so long as it doesn’t explode—so consumers could simply be holding out for the next must-have gadget. Maybe they’ll find it in Facebook’s virtual reality Oculus Rift headset, but with its price tag still hovering above $800, it might take some time before consumers feel comfortable enough to buy it.

Automobiles and Housing Affected, Too

This goes far beyond smartphones. Big-ticket items such as automobiles and homes are also seeing sluggish, or even negative, growth. The S&P Global Ratings recently cut its automobile sales estimate for the year to 17.5 million from 17.8 million.

Facing inventory build-up, Ford Motor announced it would temporarily halt production at four of its factories both here in the U.S. and Mexico, Bloomberg reports. One of these factories, in Kansas City, builds the bestselling F-150 pickup.

Meanwhile, the momentum of new housing starts and permits has also slowed, with starts falling in September for the second straight month. Despite improvement since the housing bubble, we still aren’t close to where we were pre-recession, let alone the 1990s average.  

U.S. Housing Starts and Permits Haven't Reached 1990s Average
click to enlarge

The Slowest Recovery Since the Great Depression

Household income is up, unemployment is down—and yet sales are stagnant. It’s a paradox.

A paradox, that is, until we examine another economic indicator: labor productivity.

In simple terms, productivity means labor efficiency—producing more goods and services without working longer hours. And when productivity rises, it increases our standards of living.

Since the end of World War II, productivity rose pretty steadily. But growth has been near-anemic for close to a decade now and is currently running lower than it’s ever been.

Consider the following chart. Each bar represents a new business cycle following a recession. Crawling along at 1 percent annually, today’s productivity growth is weaker than the previous 10 cycles. In the September quarter, it actually fell 0.6 percent.

Annual Percent Change in U.S. Productivity During Each Business Cycle
click to enlarge

The big question is: Why is this happening?

The answer depends on who or which economist you ask.

Possible factors that have been tossed around include the aging of the workforce, the strong dollar (which reduces the competitiveness of U.S. companies) and a slowdown in capital spending by businesses since the recession.

One of the leading theories, presented by economist Robert J. Gordon in his recent book “The Rise and Fall of American Growth,” argues that 19th and 20th-century innovations—air conditioning, indoor plumbing, the microwave, the automobile—were much more impactful on workers’ productivity than modern inventions such as the internet, cloud computing and smartphone apps. (Indeed, we’d probably all agree that these things often waste, instead of enhance, our time and energy.)

$740 Billion in New Compliance Costs

We can add to the list the growing mountain of regulations, a topic I’ve discussed many times before. According to the American Action Forum, there’s been, on average, one costly regulation—or “hidden” tax—implemented every day of the Obama administration. This has added about $740 billion and 194 million paperwork hours to the burden. Although designed with good intentions, these regulations, and the compliance costs associated with them, often stand in the way of efficiency.

Also increasing are the number of government jobs, which aren’t exactly known to drive innovation. Although we’ve seen an uptick in new manufacturing positions during the last decade, jobs have over the long-run been on the decline.

More Americans Work for the Government than in Manufacturing
click to enlarge

To get productivity back on track, and therefore consumer spending, the U.S. should strongly consider regulation reform.

 

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(s) above, you will be directed to a third-party website(s). U.S. Global Investors does not endorse all information supplied by this/these website(s) and is not responsible for its/their content.

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 6/30/2016: Ford Motor Co. 

Share “Is Weak Productivity to Blame for Sluggish Consumer Spending?”

What We Look For When Picking Superior Gold Stocks
October 11, 2016

What We Look For When Picking Superior Gold Stocks

The ability to filter through hundreds of gold stocks, choosing those with the best relative value, among other things, is a skill that our portfolio management team at U.S. Global Investors has over 30 years of experience in. Our primary fiduciary responsibility as active managers is to sift, sort and prioritize these names in order to pinpoint the ones we believe can provide the best opportunities for our funds and to our shareholders.

Although we use several technical strategies to accomplish this, I have outlined some of the most important factors we focus on when classifying the best of the best gold stocks.

The Portfolio Manager’s Cube

For starters, the portfolio manager’s cube lays out the value drivers behind superior resource stock performance. It draws attention to the intersections among a resource company’s production, cash flow and reserves (rows) and relative value, momentum and event drivers (columns). Using this model, we compare stocks to find attractive opportunities and overpriced risks, particularly in mining companies.

We start off by looking at production, cash flow and reserves on a per share basis.

Production lets us know how much gold or minerals a company expects to produce in relation to others, which will directly impact its profitability.

Similarly, cash flow deals with the costs necessary to aid in production, and indicates the quality of a company’s income. Does the company have ample cash flow to finance the costly yet necessary infrastructure, equipment, geological analysis and manpower to extract the metal, not to mention pay dividends?

For exploration companies that do not have cash flow, we look at burn rate, which describes how long a company’s current cash levels will last before it has to return for additional financing. For example, if a junior exploration company has $15 million in cash reserves and is spending $3 million a month, it has five months to deliver enough reserves per share to convince capital markets it is worth the risk.

Reserves are the economically mineable part of a mineral resource, usually demonstrated by an initial feasibility study. The average concentration of gold in the earth’s crust is 0.005 parts per million, making a substantial yield very rare. We want to see growth in reserves.

By evaluating these success factors, we have a better understanding of the management and productivity of a company, or its value. But how is it faring in relation to industry peers or its closest competitors? This is called relative value, another important point to consider.

Finally comes momentum. We want to know if a company is headed quickly and profitably toward the direction it’s aiming for. Can its upward movement last or are external factors at risk of causing a slowdown or pullback? Many times, results are event driven. This could be mergers and acquisition (M&A) activity, changes in management, new mine discoveries and the like. These are the types of events we keep a close eye on.

Using this type of explicit knowledge, along with “boots on the ground” experience, or tacit knowledge, helps us to look for and understand important events that could affect any of these success factors.

A Quant Driven Model for Stock Picking

We are practitioners of quantitative analysis. In combination with the portfolio manager’s cube, we screen mining stocks for the following factors. Each factor offers an important glimpse into how a company is handling its overall operations.

 

  • A mine’s ore grade is the proportion of the metal contained in the ore at the site. Higher-quality mines have higher ore grades and lower-quality mines have lower grades. We focus on stocks that are above median grade.
  • A company’s debt-to-equity ratio shows the amount of debt being used in order to finance its assets, relative to the amount of value represented in the shareholders’ equity. We look for companies with low debt-to-equity.
  • Modest growth in production is important. We want a mine that is producing, but recognize growth that is too extreme can be risky in the long run.
  • Cash flow return on invested capital (CFROIC) is a valuation metric for evaluating the earnings of a company, comparing its cash return to equity. We look for companies with above average CFROIC.
  • Enterprise value to operating cash flow is the ratio of the entire economic value of a company to the cash it produces.

Companies with high gross margins and enterprise value also rank well in our quant models. Gross margin is how much money a company has left after incurring costs related to producing the goods and services sold – the higher the percentage, the better.

Using technical stock screens and tacit knowledge of management teams can help us uncover hidden gems with attractive growth prospects. This is the value that our investment team at U.S. Global Investors provides for our shareholders and how we seek to generate alpha.

 

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

Cash Flow Return on Invested Capital (CFROIC) is defined as consolidated cash flow from operating activities minus capital expenditures, the difference of which is divided by the difference between total assets and non-interest bearing current liabilities. 

Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund's alpha.

Share “What We Look For When Picking Superior Gold Stocks”

Welcoming the New Addition to the S&P 500: Real Estate
September 20, 2016

Welcoming the New Addition to the S&P 500: Real Estate

In case you haven’t noticed, the S&P 500 Index is looking a little different these days. Once a subindustry of the financials sector, real estate now has its own zip code in the universe of blue chip stocks. It’s the first time since 1999 that such a change has been made to the S&P’s composition.

The new sector has a weighting of nearly 3 percent, all of it taken out of financials.

An Then There Were 11
click to enlarge

As I told CNBC Asia’s Bernie Lo recently, I think real estate’s promotion will attract more institutional and individual investors to the space. It tells them this is no longer a niche market but one with a distinct and significant presence, with its own unique business drivers.

This has been a long time coming, to be perfectly honest. Ever since the housing and financial crisis, real estate investment trusts (REITs) have been pulling in some serious cash as more become available for trading on the New York Stock Exchange and elsewhere. Altogether, REITs currently have a market cap of over $1 trillion, according to REIT.com.


click to enlarge

With investors on the hunt for yield, it’s not hard to see why. As of August 31, the FTSE NAREIT All Equity REITs Index yielded an average of 3.61 percent, compared to the S&P 500’s 2.11 percent. During 2015, stock exchange-listed REITs paid out a whopping $46.5 billion in dividends.

U.S. Equity REITs continue to climb since the housing crisis
click to enlarge

Builders Rush to Meet Demand

Looking just at the residential housing market, business is definitely booming. With 30-year mortgage rates at below 3.5 percent, the market is scorching hot in many parts of the U.S.—so much so, some builders are reporting a shortage in construction workers to meet demand.

Banks Lending Historic Sums of Cash to Real Estate Projects
click to enlarge

New construction starts rose to 1.2 million in July, beating analysts’ forecasts and suggesting the U.S. housing market appears to have finally made a full recovery eight years following the recession, with Bloomberg calling this the “strongest home sales since the start of the economic expansion.”

…But Homeownership Is Falling

Trouble could be brewing, however. As I shared with you last month, millennials just aren’t buying homes at the same rate we’ve historically seen from 18- to 34-year-olds. There are many theories as to why this is, from millennials delaying starting families to focus on careers, to a loss of trust in homeownership as a reliable investment or even as an institution, to a preference to rent. This trend has contributed to the lowest U.S. homeownership rate in five decades.

But how can this be? How could there be both massive housing demand and yet declining homeownership?

One answer might lie in population growth. Simply put, there are more of us living in the U.S. than ever before, which translates into more renting and more buying. And with single-person households on the rise every year, a need for additional housing units has become a priority. Whereas one unit would have served a married couple only a few years ago, now two are needed.

Whether you believe this or not, it seems reasonable to expect the new real estate sector to attract assets to the space, as more mutual funds will add to their exposure to better reflect the S&P 500. If anything, it will help investors monitor and track this important segment of the market.

 

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(s) above, you will be directed to a third-party website(s). U.S. Global Investors does not endorse all information supplied by this/these website(s) and is not responsible for its/their content.

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.

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The FTSE NAREIT All Equity REITs Index is a free-float adjusted, market capitalization-weighted index of U.S. Equity REITs. Constituents of the Index include all tax-qualified REITs with more than 50 percent of total assets in qualifying real estate assets other than mortgages secured by real property.

Investing in real estate securities involves risks including the potential loss of principal resulting from changes in property value, interest rates, taxes and changes in regulatory requirements.

Share “Welcoming the New Addition to the S&P 500: Real Estate”

5 Reasons Why Active Management Works
September 13, 2016

As we all know, exchange-traded funds (ETFs) have increasingly become the hot menu item, attracting a lot of money away from actively-managed funds such as mutual funds. But don’t discount active management just yet! There’s still plenty of room in your portfolio for this type of investment.

Consider the following:

1. First-Mover Advantage

Active management gives us the ability to act swiftly and strategically, with the surgical skill of a highly-trained team of Special Forces. It allows us to push out of the starting blocks much faster.

As active managers, we closely monitor key indicators and macroeconomic themes such as PMI (the Purchasing Manager’s Index), which we’ve written about many times, and negative real interest rates. These indicators, among other factors, often serve as the signals we’re looking for.

2. Explicit and Tacit Knowledge

Some people have book smarts (explicit knowledge), while others have street smarts (tacit knowledge). Active management requires that you have both.

Not only are we experts in geology and mineral resources, we’re also world travelers with “boots on the ground” experience visiting mines, spending time with mining crews and meeting with management teams.

Frank Holmes Gold Mining

3. Technical Models

We are practitioners of quantitative analysis on a per-share basis. We use a matrix of top-down macro models and bottom-up micro stock selection models to determine weightings in individual securities. When looking at mining stocks, for instance, we screen for the following factors:

Our Factors For Selecting Mining Stocks

4. Hidden Gems

Using technical stock screens and tacit knowledge of management teams can help us uncover hidden gems with attractive growth prospects.

One such company is Nevada-based Klondex Mines, which reported incredible second-quarter growth of 82 percent in net income and 25 percent in the amount of gold produced compared to the same time last year. Klondex is up more than 156 percent year-to-date, as of August 30.

Granted, this type of performance is out-of-the-ordinary, and there’s no guarantee it will be repeated in the future. But when it happens, active management can help us capture the upswing.

gold mine

5. Portfolio Manager Tenure

Active management is only as good as the people running it, and at U.S. Global Investors, we’re fortunate to have one of the best in the business—Ralph Aldis.
Ralph has over 20 years’ worth of experience at USGI alone and was even named a metals and mining “TopGun” fund manager by Brendan Wood International last year. The capital markets performance measurement firm recognized a group of investors as “optimal leaders of thought in the industry” during the year. The honor was given based on a vote from 269 sell-side professionals, and this was Ralph’s second time to receive such recognition from his peers.

Ralph Aldis Portfolio Tenure

 

Explore opportunities in precious metals and mining investment!

 

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.

Cash Flow Return on Invested Capital (CFROIC) is defined as consolidated cash flow from operating activities minus capital expenditures, the difference of which is divided by the difference between total assets and non-interest bearing current liabilities. 

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 6/30/2016: Klondex Mines Ltd., Silver Wheaton Corp.

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

Share “5 Reasons Why Active Management Works”

11 Reasons Why Everyone Wants to Move to Texas
August 30, 2016

Texas Wind Power

As many of you know, I was born in Canada but moved to the great State of Texas 26 years ago when I bought a controlling stake in U.S. Global Investors. As a “Tex-Can,” I’m so proud of my adoptive state and grateful for all that it’s done to help our company flourish.

But you don’t have to be a business owner to love and appreciate Texas. As you’ll see, many people are moving to the Lone Star State to take advantage of its many employment opportunities, tax advantages and all-around greatness. Below are just 11 reasons why more and more people want to move to Texas!  

1. Check out Our Mettle

The 2016 Olympic Games in Rio de Janeiro now belongs to history, and by a very wide margin, American competitors walked away with the most medals: 121 altogether. Looking at gold medals, the U.S. still ranked first, with 46 won. But if we took away what Texas collected, the Land of the Free would have fallen to third place, behind the U.K. and China.

Texas would rank third in Olympic gold medals if it were its own country
click to enlarge

Houston was the winningest Texas city. Home to Olympic medalists Simone Biles, Simone Manuel, Kerron Clement and more, H-Town is now 10 gold medals richer.

2. Moneybags

Texas is competitive in more than just Olympic events, of course. The state has the second-largest gross domestic product (GDP) in the Union, following California. If it were its own country, Texas would clock in at number 12 in the world, snuggled in between Canada and Australia.

Texas would rank twelth in GDP if it were its own country
click to enlarge

3. Tex-Can

If Texas were its own nation, in fact, its economy would be about the same size as Canada’s.

The Global Scale of America's Economy
click to enlarge

4. This Is Oil Country

Another thing Texas has in common with Canada? Black gold. Barrelsful of it.

Last month, Oslo-based Rystad Energy shared a report that shows the U.S. as now having the world’s largest reserve of recoverable oil, with 264 billion barrels in existing fields, unconventional shale and as-yet undiscovered areas. This is the first time such a report has moved the country ahead of both Saudi Arabia and Russia.

Were it not for the contributions of oil-rich Texas, however, this might not be the case. Thanks in large part to fracking in prolific fields such as the Eagle Ford Formation and Sprayberry Trend, the state leads all others in crude production, annually gushing out more than a third of total U.S. output.

You can see how the fracking boom helped propel the state into the same league as major OPEC nations Iraq, Iran, United Arab Emirates and Kuwait.

Texas Oil Production Raced Up to OPEC Gulf States
click to enlarge

5. A Mighty Wind

Texas is more than oil, of course. The natural-resource-rich state is also known for its natural gas production (it leads the nation), coal, electricity (again, number one in the States) and renewable energy—specifically, wind energy.

Texas Wind Power

Thanks to Competitive Renewable Energy Zones (CREZ) and $33 billion in invested capital, Texas ranks first in the nation for installed wind capacity and the number of megawatts generated by wind. In 2015, close to 10 percent of the state’s electricity production came from wind, according to the American Wind Energy Association.

With an estimated 17,000 Texans already employed in the state’s wind energy industry, Texas is in the process of installing an additional 5,200 megawatts.

6. Men at Work

Speaking of employment, that’s something else you can find a lot of in the Lone Star State. The oil industry might have taken a hit from falling crude prices, but the Texas economy has proven resilient. As you can see, the 2007-2008 global financial crisis had much less of an impact on state unemployment rates compared to other major countries and regions such as Canada, Australia, the European Union and United States.  

Texas Currently Has Lowest Unemployment Rate Among Selected Countries and Regions
click to enlarge

7. All Roads Lead to Texas

Welcome to Texas, drive friendly The Texas Way

Important to keeping business and commerce flowing, as well as helping commuters travel to and from their work, are roads. Texas has them in spades. According to the U.S. Department of Transportation, the state is connected by 313,596 miles of public road, the most of any state. With 18 numbered interstate highways, it also has more interstate miles than any other does.

If it were its own country, Texas would rank 13th by road network size, somewhere between Germany and Sweden.

At only $0.20 per gallon, the Texas gas tax is among the most reasonable in the nation. And because almost that entire amount goes to public transportation—$0.05 is devoted to public education—Texas has some of the best roads in the U.S.

While we’re on the topic of transportation, Texas also boasts the most airports of any state—1,415, according to StateMaster. Two of the four major U.S. carriers, American Airlines and Southwest Airlines, are headquartered in the Lone Star State.    

8. No Income Tax

There are only seven states without an income tax, Texas among them. (Alaska, Florida, Nevada, South Dakota, Washington and Wyoming round out the list.) 

Average Income Tax by State
click to enlarge

Neither does the state impose a corporate income tax, and last summer, Governor Gregg Abbott approved $4 billion in tax cuts for businesses and homeowners.

9. Gold Star State

The Texas bullion depository will be first in the nation

Governor Abbott is also responsible for what will be a first in the United States. More than a year after he signed a law to repatriate $1 billion in Texas gold bullion from a private HSBC vault in New York, construction will soon begin on the Texas Bullion Depository. Such a state-run gold depository doesn’t currently exist anywhere else in the U.S. It’s hoped that it will help turn Texas into a “financial Mecca,” in the words of one state senator.

10. Population Destination

Low taxes are one of the main appeals driving Texas’ rapid population growth. According to the Census Bureau, five of the 11 fastest-growing U.S. cities by population can be found in Texas. Ranking number two in the nation is New Braunfels, a lovely town originally settled by Germans that lies midway between San Antonio and Austin.

Between July 2014 and July 2015, the Lone Star State added 490,036 new residents, the most of any state by a wide margin.

Texas Added More REsidents than any other STate
click to enlarge

To put this in perspective, the number of new Texas arrivals alone between 2014 and 2015 exceeds the total populations of several countries, including Malta (population: 429,366, as of December 2014), Brunei (411,900, as of July 2014) and Iceland (336,060, as of June 2016). 

11. Bet on Tech

Texas Leads the Nation in Technology Exports

It’s not just people moving to Texas, though. Companies are as well—specifically tech companies, and, to get even more granular, Silicon Valley tech companies. The San Francisco Chronicle reports that, in recent years, more than $1 billion in taxable income has flowed from the Bay Area to Texas, as tech firms have sought not just lower taxes but also simpler regulation.

Indeed, the Lone Star State has emerged as a formidable tech hub to rival Silicon Valley. Employing more than 270,000 people, the state’s tech industry supports firms ranging in size from hip Austin startups to massive Fortune 500 companies such as Dell, Texas Instruments and Rackspace Hosting (which just agreed to a $4.3 billion acquisition deal by private equity firm Apollo Global Management).

For the last three years, Texas has led the nation in high-tech exports—everything from semiconductors to communications equipment. Last year, in fact, the state’s total sales amount exceeded California’s by a whopping $6.3 billion.

No wonder so many people are choosing Texas as the place to hang their hat!

 

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(s) above, you will be directed to a third-party website(s). U.S. Global Investors does not endorse all information supplied by this/these website(s) and is not responsible for its/their content.

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 6/30/2016: American Airlines Inc., Southwest Airlines Co.

Share “11 Reasons Why Everyone Wants to Move to Texas”

Net Asset Value
as of 06/15/2018

Global Resources Fund PSPFX $5.83 -0.08 Gold and Precious Metals Fund USERX $7.61 -0.07 World Precious Minerals Fund UNWPX $3.89 -0.06 China Region Fund USCOX $11.80 -0.04 Emerging Europe Fund EUROX $6.72 -0.10 All American Equity Fund GBTFX $25.97 0.05 Holmes Macro Trends Fund MEGAX $20.22 No Change Near-Term Tax Free Fund NEARX $2.20 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change