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Investor Alert

Please note: The 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.

November 12, 2010

Anticipating Volatility and the Rise of Emerging Markets

By Frank Holmes
CEO and Chief Investment Officer
U.S. Global Investors

Life is about managing expectations and we believe understanding market cycles helps investors navigate through the volatility of their investments. We often remind investors to “Anticipate Before You Participate” and I strongly urge you to read through our special presentation on managing volatility. Read the presentation here.

This table shows the monthly volatility based on 10 years of data for a number of different investments. You can easily see each asset class has its own unique DNA of volatility.

Standard Deviation Based on 10 Years of Data
As of 11/12/2010
Source: U.S. Global Research
NYSE Arca Gold BUGS Index (HUI) 11.1%
MSCI Emerging Markets (MXEF) 7.2%
S&P 500 Index (SPX) 5.1%
Gold Bullion 4.9%
U.S. Dollar (DXY) 2.5%
  Rolling 1 Month

For gold stocks, it’s a normal event to see a positive or negative move of 11 percent over just one month’s time. For emerging markets, it’s just over 7 percent. Understanding this volatility is essential to removing emotional reactions and making the best investment decisions.

Recently, I’ve noticed many new faces on business television commenting about a bubble forming in commodities due to the Federal Reserve’s Quantitative Easing (QE2) policy and resulting weakness in the U.S. dollar. Both of these are a part of the commodity equation but focusing on them omits several long-term factors driving commodities.

I do not see a bubble at this time but our quant models are showing we are due for a short-term correction. Investors need to anticipate this correction and not lose sight of the long-term trend.

We believe government policies are a precursor to change, and as a result, we monitor and track the fiscal and monetary policies of the world’s largest countries both in terms of economic stature and population.  

This table shows the population size and economic stature of the emerging world—represented by what we like to call the E7—versus the developed world—the G7.

E7 and G7 Population vs GDP

You can see that the emerging world currently holds roughly half of the world’s population but less than one-fifth of its economic clout. Already we are seeing a tremendous transformation of the emerging world and we don’t think this imbalance will remain the case for long.

Most significant has been the doubling of the world’s population since 1970, with 40 percent of the world’s population being in China and India—we affectionately call this region Chindia. Chindia has evolved from being isolationists 40 years ago to center stage on the global scene today.

With this population surge and integration into the global economy comes a need for new and improved infrastructure. Did you know that when the U.S. built its Interstate Highway System in the 1950s it consumed roughly half of the world’s available commodities?

Today’s equivalent of President Eisenhower’s highway buildout is the network of subways and rapid transit systems China is constructing. This graphic from CICC charts the world’s top ten cities by total length of rapid transit. With 410 kilometers of tracks, Shanghai reigns as king over cities like London, New York, Tokyo and Madrid.

Top Ten Cities by Total Length of Rapid Transit Systems

Even more surprising is the pace at which they have been able to lay so many tracks. The first subway cars rolled down the tracks in London and New York during the 1860s but Shanghai’s first subway wasn’t operational until 1993. That means it took China 17 years to build what it took the UK and the U.S. 150 years to construct.

Shanghai and Beijing are the largest systems in China but recently many of the smaller cities, often referred to as Tier 2 cities, are hopping on board. The Chinese government has already approved construction for 28 rapid transit systems and 36 other cities have submitted applications for construction, according to CICC.

Our China analyst Michael Ding witnessed this firsthand while traveling in China last week. Michael was surprised to see a subway being constructed in his hometown of Dalian, a city of about 6 million. I had a similar surprising experience in New Delhi a couple of years ago when I traveled on the city’s new, pristine subway system. 

While short-term factors like the U.S. dollar’s volatility and the Federal Reserve’s QE2 program seem to grab the most attention, I believe the doubling of the world’s population, massive infrastructure expansion like China’s subways and the “free market policies” being embraced by the government leaders in the emerging world are much more significant.

Get the Historica Perspective with Ian McAvity and his Deliberations on World Markets. Watch the webcast on demand.

Index Summary

  • The major market indices were lower this week. The Dow Jones Industrial Average lost 2.2 percent. The S&P 500 Stock Index gave up 2.17 percent, while the Nasdaq Composite finished 2.36 percent lower.
  • Barra Value underperformed Barra Growth as Barra Value finished 2.22 percent lower while Barra Growth lost 2.13 percent. The Russell 2000 closed the week with a loss of 2.35 percent.
  • The Hang Seng Composite finished lower by 2.71 percent; Taiwan was down 1.58 percent, and the KOSPI fell 1.33 percent.
  • The 10-year Treasury bond yield closed at 2.78 percent, up 25 basis points for the week.

Domestic Equity Market

The figure below shows the performance of each sector in the S&P 500 Index for the week. The best-performing and only positive sector for the week was energy, which rose 0.95 percent. Financials were the worst performers, followed by technology and industrials.

Within the energy sector, the best-performing stock was Halliburton, up 12 percent. Other top performers were Consol Energy, Range Resources and Cabot Oil & Gas.

S&P 500 Economic Sectors

Strengths

  • The coal group was one of the best-performing groups for the week, up 2.5 percent, led by Consol Energy. The company rose as Chevron agreed to buy Atlas Energy, which helped crystallize the valuation of Consol’s Marcellus Shale holdings.
  • Priceline.com rose 6.7 percent as the company released earnings this week which surpassed investor expectations.
  • Halliburton held a successful analyst day in which investors were encouraged by international growth and rising margins.

Weaknesses

  • Dean Foods was the worst performer in the S&P 500 this week, falling by more than 26 percent as the company missed earnings expectations and also guided the fourth quarter below consensus.
  • Cisco Systems was the second-worst performer, falling 17 percent as the company cited waning government purchases of its equipment. Cisco said that state government orders fell 48 percent.
  • Boeing fell by 11.5 percent as the new Dreamliner suffered another setback when a test flight was forced to make an emergency landing after a fire on board.

Opportunities

  • There may be an opportunity for gain in merger and acquisition (M&A) transactions in 2010. Corporate liquidity is high, thereby providing the means to pursue acquisitions.

Threats

  • Should investors’ expectations for an improving economy not come to fruition on a reasonable timeframe, it could be a threat to stock prices.
  • As governments around the world begin to wind down the monetary and fiscal stimulus programs put in place during the economic crisis, it will likely present a headwind for stocks.

What's driving Emerging Markets? Learn more.

The Economy and Bond Market

Economic news flow was relatively light after an action-packed week last week. The market continued to digest the implications of quantitative easing (QE2), the mid-term elections and employment data. Bonds sold off this week, sending yields higher by as much as 25 basis points on a combination of QE2 trade unwind and speculation that troubled European lenders will be supported by the rest of the Euro region. The stress and concerns surrounding peripheral European countries can be seen in the chart below, which shows the current Irish 10-year bond price, which currently yields about 8 percent.

Irish 10 Year Government Bond Prices

Strengths

  • Mortgage rates fell to a record low of 4.17 percent.
  • Consumer debt continued to decline in the third quarter as necessary deleveraging is taking place.
  • The University of Michigan Confidence Index rose modestly in November.

Weaknesses

  • Soaring Irish bond yields highlight the remaining risks and concerns surrounding the Euro region.
  • China raised its bank reserve ratio as it steps up efforts to slow inflation and to offset some of the spillover from the U.S. QE2 program.
  • Wholesale inventories rose 1.5 percent in September, matching the largest increase in two years. This is a potential red flag for manufacturing, as the restocking process is likely completed and this data points to slowing sales.

Opportunities

  • Inflation is unlikely to be a problem for some time, giving central bankers and other policy makers around the world room for expansive policies.

Threats

  • Inflation expectations as measured by TIPS spreads have risen sharply over the past month. Inflation expectations will be key data points to drive Fed policy changes going forward.

How well do you know the G-20?

World Precious Minerals Fund - UNWPX • Gold and Precious Metals Fund - USERX

Gold Market

For the week, spot gold closed at $1,368.75 per ounce, down $24.90, or 1.79 percent for the week. However, gold equities, as measured by the Philadelphia Gold & Silver Index, actually gained 0.55 percent. The U.S. Trade-Weighted Dollar Index surged 2.09 percent for the week on somewhat of a reversal that QE2 was fully priced by the markets.

Strengths

  • World Bank President Robert Zoellick wrote in the Financial Times that gold should be used as an “international reference point of market expectations about inflation, deflation and future currency values. Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today.”
  • Zoellick later said that he was not advocating a return to a gold standard for exchange rates, but described the metal as “the elephant in the room” that policy makers needed to acknowledge.
  • “The dollar is losing its relevance especially with the emergence of Asia economies, so a more neutral benchmark may be required. Gold, amid all the recent uncertainty, is proving its worth,” said ANZ's senior commodity analyst, Mark Pervan.

Weaknesses

  • Gold reached an intraday record high early in the week of $1,422 as investors bought the metal on inflation concerns and reemerging euro sovereign debt problems. However, as the week came to a close, a new round of profit taking emerged on concern over rate hikes in China and increased CME margin requirements for silver speculators.
  • Gary Shilling, who correctly predicted the collapse in the U.S. housing market, noted the stock market is overvalued and foresees a significant selloff within a year.
  • The Federal Reserve is targeting an increase in asset prices, particularly in stocks, to create a wealth effect, and investors have responded by bidding up prices significantly before the official announcement. A sustained recovery does not appear to be in the cards after insiders sold a record $4.5 billion of their personal holdings in company stock last week

Opportunities

  • China is boosting domestic minerals exploration spending in an effort to reduce the country’s dependence on imports of iron ore and copper. China plans to spend $4.48 billion over the next five years to explore for minerals in 21 provinces to reduce its reliance on imported mineral products.
  • Commerzbank expects gold to reach $1,450 per ounce by the end of 2011, supported by quantitative easing from the U.S. and worries about countries trying to devalue their currencies.
  • “The dollar is going to be debased in a major way, and that’s reflected in a rising gold price,” said Felix Zulauf, president of Zulauf Asset Management. “If it remains within conventional boundaries, then I think $2,500 within the next two, three years is possible. Most likely it will eventually get outside of conventional boundaries when the situation worsens, and then it can go much higher in terms of U.S. dollars.”

Threats

  • A Bloomberg poll of over 1,000 investors, analysts, and traders resulted in 75 percent of them saying that QE2 will have little or no effect on joblessness and more than half also said that the action will not increase U.S. growth over the next year.
  • In terms of the Fed, David Rosenberg of Gluskin Sheff noted we may have seen the last of quantitative easing. In 2011, there will be three new voting Federal Reserve Bank presidents who have verbally opposed the easing initiatives.

What's driving Emerging Markets? Learn more.

Energy and Natural Resources Market

Global Oil Demand Appears To Be Headed Toward Record Rates

Strengths

  • West Texas Intermediate (WTI) oil prices climbed to their highest level in over two years Wednesday, buoyed by the U.S. Energy Information Administration (EIA) inventory report showing significant draws in all three major oil stock categories.
  • Frontline, the world’s biggest supertanker operator, said it’s seeing “huge” demand for crude-oil imports from China, potentially reversing a slump that contributed to mostly unprofitable charter rates since June.
  • OPEC raised its forecast for global oil demand in 2011 by 310,000 barrels per day. OPEC’s growth estimate for oil demand in 2011 is now 1.17 million barrels per day compared to 1.05 million barrels per day previously, but is still well below the EIA report at 1.44 million barrels per day and the International Energy Agency (IEA) report, which was at 1.22 million barrels per day in October.
  • Gold imports by India increased 25 percent to 20 tonnes due to a surge in demand for jewelry during the Diwali festival, according to the Bombay Bullion Association.

Weaknesses

  • China’s imports of copper in October declined 25.8 percent month-over-month to 273,510 million tonnes.
  • Crude steel production in China dropped 3.8 percent year-over-year in October as the government imposed power restrictions to meet energy efficiency targets. Output was 50.3 million metric tons, according to data from the National Statistics Bureau.

Opportunities

  • Analysts at Merrill Lynch aggressively upgraded price forecasts for base metals based on a combination of U.S. Federal Reserve QE and dollar debasement and emerging market demand. They forecast copper to average $5.10 per pound in 2011 and $5.44 per pound in 2012.
  • According to Alcoa, China would like to curtail another 600,000 tonnes of aluminum smelter production before the end of 2010 to meet energy efficiency targets.
  • Bloomberg reported that Coal India may bid for one of Massey Energy Company’s coal mines in the Eastern U.S.
  • China has signed another long-term supply agreement, this time with Kazakhstan, according to a number of press articles. Kazakhstan will reportedly supply China Guangdong Nuclear Power Company with a total of about 63 million pounds of triuranium octoxide until 2020. There are no details on pricing, but this contract is slightly larger than the AREVA deal announced last week.

Threats

  • China sold almost all the zinc on offer from state reserves at below-market prices in the latest auctions held in an attempt to curb price gains. The government sold 49,992.97 metric tons of the 50,000 tons on offer through auctions on November 9 at an average price of 19,511 yuan ($2,946) a ton, said the State Bureau of Material Reserve.
  • China’s central bank raised lenders’ reserve requirements as cash from October’s larger-than-forecast $27.1 billion trade surplus threatened to add to the risk of asset bubbles and accelerating inflation. Reserve requirements will increase 0.5 percentage points from November 16, the People’s Bank of China said in a statement.
Frank Talk Insight for Investors
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November 12, 2010
Three Asian Markets We Are Positive On
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November 9, 2010
Record Gold Prices and the Festival of Lights
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November 8, 2010
Diwali, Dollars and Gold
A Blog by Frank Holmes, C.E.O. and Chief Investment Officer

Emerging Markets

Strengths

  • China’s passenger car sales rose 27 percent year-over-year to 1.2 million units in October, the fastest pace in six months, driven by end-of-year government purchases as well as speculation that car-buying incentives may be reduced or eliminated next year.
  • Moody’s raised China’s debt rating to Aa3, its fourth-highest ranking, from A1, citing the country’s resilient economic growth and likely containment and effective management of losses from record lending in 2009 to combat the global financial crisis. Hong Kong’s rating was also raised to Aa1 from Aa2.
  • Hong Kong’s GDP expanded by a faster-than-estimated 6.8 percent year-over-year in the third quarter, accelerating from the second quarter’s 6.5 percent, thanks to robust service exports and household consumption.
  • LAN, the Chilean air carrier, announced strong traffic data for October with passenger traffic rising by 15.9 percent year-over-year and cargo volume rising by 18.5 percent year-over-year.
  • Various emerging market companies continue to expand beyond their borders – most recently Bimbo of Mexico announced an acquisition of Sara Lee’s North American bakery business for $959 million. Investors seemed to approve of this move with Bimbo’s shares up 5 percent on the news.
  • Walmex’s same-store-sales (SSS) in October increased by 4.2 percent year-over-year with a 2.6 percent higher average ticket size.
  • Higher sugar prices, up 42 percent during the third quarter, are benefiting some Brazilian sugar/ethanol producers. Cosan this week announced strong third quarter results with EBITDA coming in 30 percent above expectations.
  • Hungary’s economic growth accelerated in the third quarter as rising domestic consumption and increasing export demand in Western Europe is helping the country recover from its worst recession in 18 years. GDP grew an annual 1.6 percent after expanding 1 percent in the second quarter, according to Bloomberg.

Weaknesses

  • China raised required reserve ratios for all banks by 50 basis points and an extra 50 basis points for six large banks in an effort to drain excess liquidity in the banking system and better manage inflation expectations.
  • China’s Consumer Price Index (CPI) rose by a higher-than-expected 4.4 percent in October from a year earlier and by 0.7 percent from September, attributable to a 10.1 percent year-over-year increase in food prices, the first double-digit gain since August 2008.
  • Thailand’s consumer confidence dropped to 71.6 in October from 73.5 in September, the first decline in six months, as the local currency strengthened to a 13-year high against the U.S. dollar and the worst floods in five decades impacted the agricultural sector.
  • We are watching for rising inflationary expectations around the world—Brazil’s October CPI came in at 5.2 percent compared with 4.7 percent in September, with higher food prices the main contributor.
  • The Hungarian government’s budget plan includes revenue projections for a special tax on selected industries to last through 2014, instead of ending a temporary levy after 2012 as previously announced.

Opportunities

  • Incipient fears over government policy tightening in China may trigger sector rotation into more defensive industries such as healthcare. With the Chinese government-spending on healthcare reaching RMB 297.8 billion in October, representing an accelerated growth rate of 63 percent versus last year, local medical equipment makers should benefit the most due to a government policy focus on expanding hospitals across the country.
  • A study by the Chilean Copper Commission estimates that by 2020, India will become the world’s second-largest copper consumer, versus its current position in sixth place behind China, the U.S., Germany, South Korea and Japan. The expectations are that the current annual consumption by India of around 610,000 tones will rise to 2.4-3.6 million tones. By comparison, China currently consumes around 6 million tones of copper annually.
  • While Zimbabwe has remained a non-entry place for many investors, there are more and more indications that the country is warming up to the entry of international companies. In the latest move, Essar Group of India is reportedly paying around $500 million for a 54 percent stake in Zisco, the local steel manufacturer, which has the capacity to produce 1 million tones of steel.
  • According to the Mexican press, there are three private equity groups interested in resurrecting Mexicana, the bankrupt airline. Any deal will have to be approved by the unions representing pilots, ground service and air hostesses; we understand that there are some labor liabilities that may pose a stumbling block.
  • Hungary, which escaped having it debt rating cut to junk by Standard & Poor’s last week, is underappreciated by investors given its fiscal performance, Royal Bank of Canada said. The chart below shows that Hungary will be the only country in Eastern Europe to run a budget surplus this year and next.

Investors Under Appreciate Hungary's Fundamentals

Threats

  • The prospect of China’s headline inflation to remain above 4 percent in the near future makes the specter of government price controls loom large, given China’s track record of pricing intervention when inflation of consumer items exceeded 4 percent on a year-over-year basis as recently as in 2004, 2007 and 2008. If price controls are brought to bear again, investor sentiment might turn negative towards producers of such consumer necessities as food, fuel and electricity.

Imposition of Government Price Control Remains a Challenge for Chinese Food, Fuel, and Power Producers

  • The Central Bank of Turkey raised the reserve requirement ratio on lira deposits to 6 percent, which should drain market liquidity by 2.1 billion, according to J.P. Morgan. The monetary policy committee voiced its concern over fast loan growth and worsening external balances, in a clear signal of an imminent hike in interest rates.

What's driving Emerging Markets? Learn more.

Leaders and Laggards

The tables show the performance of major equity and commodity market benchmarks of our family of funds.

Weekly Performance
Index Close Weekly
Change($)
Weekly
Change(%)
S&P Basic Materials 219.85 -4.96 -2.21%
S&P Energy 469.56 +4.44 +0.95%
Hang Seng Composite Index 3,402.65 -94.82 -2.71%
Gold Futures 1,367.80 -29.90 -2.14%
XAU 216.10 +1.19 +0.55%
Russell 2000 719.28 -17.31 -2.35%
S&P BARRA Value 558.44 -12.69 -2.22%
S&P 500 1,199.21 -26.64 -2.17%
DJIA 11,192.58 -251.50 -2.20%
Oil Futures 84.57 -2.28 -2.63%
S&P BARRA Growth 633.21 -13.76 -2.13%
Nasdaq 2,518.21 -60.77 -2.36%
Korean KOSPI Index 1,913.12 -25.84 -1.33%
S&P/TSX Canadian Gold Index 416.02 +2.09 +0.50%
Natural Gas Futures 3.83 -0.11 -2.82%
10-Yr Treasury Bond 2.78 +0.25 +9.87%

Monthly Performance
Index Close Monthly
Change($)
Monthly
Change(%)
Oil Futures 84.57 +1.56 +1.88%
XAU 216.10 +6.46 +3.08%
Russell 2000 719.28 +12.81 +1.81%
S&P Energy 469.56 +28.04 +6.35%
Nasdaq 2,518.21 +76.98 +3.15%
Gold Futures 1,367.80 -2.70 -0.20%
S&P Basic Materials 219.85 +4.80 +2.23%
S&P BARRA Growth 633.21 +17.48 +2.84%
Korean KOSPI Index 1,913.12 +36.97 +1.97%
S&P 500 1,199.21 +21.11 +1.79%
DJIA 11,192.58 +96.50 +0.87%
S&P BARRA Value 558.44 +4.07 +0.73%
S&P/TSX Canadian Gold Index 416.02 +7.09 +1.73%
Natural Gas Futures 3.83 +0.13 +3.52%
10-Yr Treasury Bond 2.78 +0.36 +14.77%
Hang Seng Composite Index 3,402.65 -332.01 -14.83%

Quarterly Performance
Index Close Quarterly
Change($)
Quarterly
Change(%)
XAU 216.10 +41.96 +24.10%
S&P Basic Materials 219.85 +29.73 +15.64%
Hang Seng Composite Index 3,402.65 +453.20 +15.37%
S&P/TSX Canadian Gold Index 416.02 +47.19 +12.79%
Gold Futures 1,367.80 +151.10 +12.42%
Russell 2000 719.28 +102.30 +16.58%
Korean KOSPI Index 1,913.12 +191.37 +11.11%
S&P Energy 469.56 +68.74 +17.15%
Nasdaq 2,518.21 +327.94 +14.97%
Oil Futures 84.57 +8.83 +11.66%
S&P BARRA Growth 633.21 +73.41 +13.11%
S&P 500 1,199.21 +115.60 +10.67%
DJIA 11,192.58 +872.63 +8.46%
S&P BARRA Value 558.44 +42.58 +8.25%
Natural Gas Futures 3.83 -0.47 -10.94%
10-Yr Treasury Bond 2.78 +0.04 +1.27%

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.

An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
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 Eastern European Fund invests more than 25 percent 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.
Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries.
Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5 percent to 10 percent of your portfolio in these sectors. 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.
Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local income taxes, and if applicable, may subject certain investors to the Alternative Minimum Tax as well. Each tax free fund may invest up to 20 percent 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. Bond funds are subject to interest-rate risk; their value declines as interest rates rise. The tax free funds may be exposed to risks related to a concentration of investments in a particular state or geographic area. These investments present risks resulting from changes in economic conditions of the region or issuer.
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.
Past performance does not guarantee future results.
These market comments were compiled using Bloomberg and Reuters financial news.

Holdings as a percentage of net assets as of 9/30/10:
Halliburton: 0.0%
Consol Energy: 0.0%
Range Resources: 0.0%
Cabot Oil & Gas: 0.0%
Chevron: All American Equity Fund: 0.97%
Atlas Energy: World Precious Minerals Fund: 1.19%; Global Resources Fund: 1.86%
Priceline.com: 0.0%
Dean Foods: 0.0%
Cisco Systems: 0.0%
Boeing: 0.0%
Alcoa: 0.0%
Coal India: 0.0%
Massey Energy Company: 0.0%
China Guangdong Nuclear Power Company:
LAN: 0.0%
Bimbo: 0.0%
Sara Lee’s: 0.0%
Walmex: 0.0%
Cosan: Global Emerging Markets Fund: 1.10%
Essar Gropu: 0.0%
Zisco: 0.0%

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


The Dow Jones Industrial Average is a price-weighted average of 30 blue chip stocks that are generally leaders in their industry.
The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.
The Nasdaq Composite Index is a capitalization-weighted index of all Nasdaq National Market and SmallCap stocks.
The S&P BARRA Growth Index is a capitalization-weighted index of all stocks in the S&P 500 that have high price-to-book ratios.
The S&P BARRA Value Index is a capitalization-weighted index of all stocks in the S&P 500 that have low price-to-book ratios.
The Russell 2000 Index® is a U.S. equity index measuring the performance of the 2,000 smallest companies in the Russell 3000®, a widely recognized small-cap index.
The Hang Seng Composite Index is a market capitalization-weighted index that comprises the top 200 companies listed on Stock Exchange of Hong Kong, based on average market cap for the 12 months.
The Taiwan Stock Exchange Index is a capitalization-weighted index of all listed common shares traded on the Taiwan Stock Exchange.
The Korea Stock Price Index is a capitalization-weighted index of all common shares and preferred shares on the Korean Stock Exchanges.
The Philadelphia Stock Exchange Gold and Silver Index (XAU) is a capitalization-weighted index that includes the leading companies involved in the mining of gold and silver.
The U.S. Trade Weighted Dollar Index provides a general indication of the international value of the U.S. dollar.
The MSCI Russia Index is a free-float weighted equity index developed in 1994 to track major equities traded in the Russian market.
The S&P/TSX Canadian Gold Capped Sector Index is a modified capitalization-weighted index, whose equity weights are capped 25 percent and index constituents are derived from a subset stock pool of S&P/TSX Composite Index stocks.
The S&P 500 Energy Index is a capitalization-weighted index that tracks the companies in the energy sector as a subset of the S&P 500.
The S&P 500 Materials Index is a capitalization-weighted index that tracks the companies in the material sector as a subset of the S&P 500.
The S&P 500 Financials Index is a capitalization-weighted index. The index was developed with a base level of 10 for the 1941-43 base period.
The S&P 500 Industrials Index is a Materials Index is a capitalization-weighted index that tracks the companies in the industrial sector as a subset of the S&P 500.
The S&P 500 Consumer Discretionary Index is a capitalization-weighted index that tracks the companies in the consumer discretionary sector as a subset of the S&P 500.
The S&P 500 Information Technology Index is a capitalization-weighted index that tracks the companies in the information technology sector as a subset of the S&P 500.
The S&P 500 Consumer Staples Index is a Materials Index is a capitalization-weighted index that tracks the companies in the consumer staples sector as a subset of the S&P 500.
The S&P 500 Utilities Index is a capitalization-weighted index that tracks the companies in the utilities sector as a subset of the S&P 500.
The S&P 500 Healthcare Index is a capitalization-weighted index that tracks the companies in the healthcare sector as a subset of the S&P 500.
The S&P 500 Telecom Index is a Materials Index is a capitalization-weighted index that tracks the companies in the telecom sector as a subset of the S&P 500.
The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) is a modified equal dollar weighted index of companies involved in gold mining. The HUI Index was designed to provide significant exposure to near term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.
The University of Michigan Confidence Index is a survey of consumer confidence conducted by the University of Michigan. The report, released on the tenth of each month, gives a snapshot of whether or not consumers are willing to spend money.
The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals. The weights of components are based on consumer spending patterns.

Net Asset Value
as of 12/09/2019

Global Resources Fund PSPFX $4.42 0.02 Gold and Precious Metals Fund USERX $9.03 No Change World Precious Minerals Fund UNWPX $2.96 0.01 China Region Fund USCOX $8.81 -0.08 Emerging Europe Fund EUROX $7.38 No Change All American Equity Fund GBTFX $25.83 -0.04 Holmes Macro Trends Fund MEGAX $16.98 -0.06 Near-Term Tax Free Fund NEARX $2.22 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change