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Macroeconomic Trends Can Help Steer You Straight

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.

August 17, 2018

If investors want to successfully manage risk and reward, they must not lose the forest for the trees.  When assessing macroeconomic trends, Frank Holmes, CEO and CIO of U.S. Global Investors, considers gross domestic product (GDP) his “rear-view mirror,” while the purchasing manager’s index (PMI) is his go-to forward-looking indicator.

Fully grasping the implications behind these indicators requires both tacit and explicit knowledge, says Frank.  Explicit knowledge is factual, like passing a driver’s test, while tacit knowledge can only be gained through experience. 

For a complete explanation of Frank’s thoughts on macroeconomics, watch the video below!

 

Want the latest updates from Frank Holmes? Subscribe to his award-winning CEO blog Frank Talk by clicking here.

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

Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

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.

Regression is a statistical measure that attempts to determine the strength of the relationship between one dependent variable and a series of other changing variables (known as independent variables).

Net Asset Value
as of 11/15/2018

Global Resources Fund PSPFX $4.86 0.06 Gold and Precious Metals Fund USERX $6.41 0.13 World Precious Minerals Fund UNWPX $3.16 0.01 China Region Fund USCOX $8.21 0.18 Emerging Europe Fund EUROX $6.33 0.07 All American Equity Fund GBTFX $24.92 0.09 Holmes Macro Trends Fund MEGAX $18.50 0.09 Near-Term Tax Free Fund NEARX $2.19 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change