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Frank Holmes  

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  • Why This Airline Just Landed In The S&P 500 Index
    Tue, Mar. 24 DAL, LUV, AAL Comment!

    Summary

    • Just four years ago, the company found itself in bankruptcy court.
    • Plus, I revisit the relationship between the U.S. dollar and gold.
    • And a note on why municipal bonds still make sense for investors.
  • What The Federal Reserve And The Fear Trade Do For Gold
    Fri, Mar. 20 GLD, IAU, PHYS 3 Comments

    Summary

    • With the dollar index at an 11-year high, gold prices are under a lot of pressure.
    • This month, real interest rates in the U.S. have turned massively positive, putting additional downward pressure on the yellow metal.
    • It's important to manage expectations and use gold for what it's best at: portfolio diversification.
  • The Airline Industry Ascended To New Records In 2014
    Wed, Mar. 18 DAL, ALK, EMDI Comment!

    Summary

    • Waxing Wanderlust.
    • The "Sixth Continent" and Luxury Shopping.
    • Focusing on Shareholders.
  • Skin-In-The-Game Investing: Why It Matters
    Tue, Mar. 10 1 Comment

    Summary

    • I believe it’s absolutely essential for our investment team, officers and I to be invested in our funds.
    • Because we face the very same risks and rewards that our investors do, we’re motivated and incentivized to exert greater care and effort into the management of our funds.
    • Warren Buffett reassures shareholders that “most of our directors have a major portion of their net worth invested in the company. We eat our own cooking.”.
  • The Periodic Table Of Emerging Markets: India Is On Top
    Wed, Mar. 4 EPI, EEME, GXG 1 Comment

    Summary

    • Home to 1.25 billion people, India was the best-performing emerging market in 2014.
    • Last year we saw a strong bifurcation between emerging markets in Asia and those in Eastern Europe and South America.
    • Colombia had its second consecutive down year as a result of low oil prices and socialist-type policies.
  • Why We Invest In Royalty Companies
    Sat, Feb. 28 SLW, RGLD, FNV 4 Comments

    Summary

    • These names enjoy many of the upsides of being in the precious metals industry but face very few of the risks.
    • Compared to miners, royalty names have extremely low overhead.
    • A quick look at how Franco-Nevada is doing.
  • Why Bad News Is Good News In Europe - 7 Charts Showing What You Really Need To Know
    Tue, Feb. 24 IEV, FXE Comment!

    Summary

    • Emerging Europe purchasing managers' index numbers are swinging up.
    • The Citi Economic Surprise Index for the eurozone has exceeded forecasts.
    • Another sign that the European recovery is underway is the recent uptick in spending habits.
  • Mind-Blowing: China Consumes More Gold Than The World Produces
    Thu, Feb. 19 GLD 20 Comments

    Summary

    • Official “Year of the Ram” gold coins sold out days ago, and since the beginning of January, withdrawals from the Shanghai Gold Exchange have grown to over 315 tonnes.
    • One of the most popular gifts to give and receive during Chinese New Year is gold —a prime example of the Love Trade.
    • The Year of the Ram has also ushered in a new visa policy, one that has the potential to draw many more Chinese tourists to American shores.
  • Africa Could Mine Its Way To Prosperity If It Addresses Instability
    Thu, Feb. 19 GDX, GDXJ, AFK 3 Comments

    Summary

    • The less friction and fewer disruptions there are, the easier it is for money to flow.
    • A strong mining sector doesn’t just benefit the native country; it's a global good that benefits all.
    • Many miners not operating in the U.S. are the beneficiaries of a weak local currency.
  • Global Airline Stocks Soaring, And Not Just Because Of Low Oil Prices
    Fri, Feb. 13 Comment!

    Summary

    • Global airline stocks have gained significant ground since 2012, reaching all-time highs.
    • The decision to increase seat density has helped carriers significantly lower their cost per available seat mile.
    • Arguably the most important factor contributing to airlines’ recent uptrend is the emergence and expansion of the middle class in the developing world.
  • China Just Crossed A Landmark Threshold
    Tue, Feb. 10 FXI, PGJ, YINN 7 Comments

    Summary

    • It's now estimated that within the next decade, China will have invested $1.25 trillion into the global market.
    • Much of this capital is being channeled into Africa, home to about 60 percent of the world’s uncultivated arable land.
    • China has slashed hundreds of lines of red tape in an effort to jumpstart economic growth and encourage business startups.
  • Bad News Is Good News: A Contrarian View Of China Investing
    Wed, Jan. 14 FXI, PGJ, YINN Comment!

    Summary

    • A Healthy Balance Between Monetary and Fiscal Support.
    • Government to Remain Accomodative.
    • Oil Sinks, Airlines Take Flight.
  • 15 Charts To Keep Your Eyes On For '15
    Thu, Jan. 8 DIA, SPY, QQQ 1 Comment

    Summary

    • For crude oil, a bottom and subsequent rally might emerge as early as next month.
    • China A-Shares continue to be undervalued and offer a favorable risk-reward profile.
    • Gold appears likely to remain an attractive investment with the global downturn in effect.
  • Flying High In The Sky, Looking For Opportunities In 2015
    Tue, Jan. 6 SPY, DIA 2 Comments

    Summary

    • Multiple asset classes and the magic of mean reversion.
    • The case for active management and contrarian investing.
    • Keeping it diversified in the new year.
  • Gold Beat All Other World Currencies In 2014
    Dec. 31, 2014 GLD, IAU, SGOL 12 Comments

    Summary

    • Despite its decline midway through the year, its price has remained relatively stable, much more so than oil’s.
    • A closer look at the case for gold as currency.
    • Why the yellow metal remains an exceptional instrument for portfolio diversity.
  • Epic Price Reversal For Commodities In 2014
    Dec. 30, 2014 GLD, USO, IAU 1 Comment

    Summary

    • Oil Dropped Nearly 50 Percent Since the Summer.
    • Gold Found the Support Where Oil Didn’t and Was the Second-Best Currency of the Year.
    • In a Time When Many Commodities Were Depressed, Diamonds Retained Their Glitter.
  • Chindia 2014: Our Top 10 Stories You Don't Want To Miss
    Dec. 26, 2014 FXI, EPI, INDY 10 Comments

    Summary

    • For every seven people on Earth, more than two and a half are either Chinese or Indian.
    • Both Asian powerhouses implemented new government policies in 2014 that have changed their economic landscape.
    • See how each country reacted to these changes and what implications these have moving into 2015.
  • The $330 Billion Global Tax Break
    Dec. 24, 2014 RSX, CRUD, OIL 7 Comments

    Summary

    • When certain stocks drop in price, investors scramble for the exit instead of picking up the bargains.
    • There are sound reasons to believe that oil prices will be normalizing sooner rather than later.
    • Russia is hemorrhaging capital as a result of international sanctions and crashing oil prices.
  • Are Oil Prices Ready To Break Out Of The Trough?
    Dec. 7, 2014 8 Comments

    Summary

    • Global slowdown and abundant oil have prompted the rapid decline in prices.
    • Oil markets have historically been quick to recover because exploration and production become unsustainable otherwise.
    • Former Saudi ambassador to the United States stated on Tuesday that Saudi Arabia would agree to cuts only if other countries, including OPEC countries, participated.
  • With Oil And Gold Prices Depressed, Halliburton And Osisko Play Defense
    Dec. 1, 2014 HAL, BHI, OKSKF 1 Comment

    Summary

    • When one company acquires another, the buyer tends to experience a short-term slowdown during the digestion period.
    • Shareholders of the acquired company often benefit because, in an effort to sweeten the deal, they’re given attractive stock swap privileges or other perks.
    • How should we view Halliburton's purchase of Baker Hughes?
  • Explore And Discover The Winners When Gas Prices Fall
    Nov. 19, 2014 JJU, FOIL, WMT Comment!

    Summary

    • In the United States the national average gas price has fallen close to 20 percent.
    • Three of the main contributors to oil’s decline are the strong U.S. dollar, geopolitics, and the acceleration of American oil production.
    • American consumers have been treated to an unexpected tax break because of this slump.
  • The Holiday Alibaba's Jack Ma Built
    Nov. 13, 2014 BABA 11 Comments

    Summary

    • Alibaba generates more online revenue on Singles Day than the entire U.S. market does on Black Friday and Cyber Monday combined.
    • The data illuminates the urbanization and changing spending habits of China.
    • The Alibaba business model is attractive not just to Chinese, but to global consumers.
  • New Economic Report Card Shows That The U.S. Still Has The Competitive Edge
    Oct. 17, 2014 NEARX 3 Comments

    Summary

    • Latest Global Competitiveness Report names the U.S. the third-most competitive nation in the world.
    • What are America's strengths and areas for improvement?
    • Key emerging markets that rose up the list were China, Malaysia, Thailand, Indonesia and the Philippines.
  • Warning: Market Correction Last Week... Did You See The Opportunity?
    Oct. 14, 2014 15 Comments

    Summary

    • PMI: Why it's commodities' crystal ball.
    • The polarity of the dollar and crude oil.
    • Natural resources stock priced to move.
  • How Alibaba Could Capitalize On The eBay-PayPal Split
    Oct. 9, 2014 EBAY, BABA 2 Comments

    Summary

    • The split makes sense although eBay will give up much of its market value.
    • Asian e-commerce companies are making huge strides.
    • Competition is mounting between Asian and American Internet stocks.
  • 600 Million Reasons To Keep Your Eyes On India
    Oct. 9, 2014 INDA 5 Comments

    Summary

    • The country has found itself in the driver's seat of global resources demand and production.
    • Since Modi's election in late May, the consumer outlook index in India has risen nearly 8 percent.
    • Despite all the good news however, India has many economic and political challenges to overcome.
  • 5 Reasons Why Short-Term Municipal Bonds Make Sense Now
    Oct. 1, 2014 MUB, PZA, TFI 1 Comment

    Summary

    • Investors should remember that when interest rates rise, bond prices will fall.
    • If the Fed raised rates tomorrow, what potential implications would that have on the yield curve and bond prices?
    • There’s reason to believe that issuing bonds is the most effective way for governments to generate the funding necessary for specific undertakings.
  • China Defies Analysts' Predictions With An Encouraging PMI
    Sep. 26, 2014 CHXX, CHII, CHIM Comment!

    Summary

    • China's economic health affects global markets, driving commodity demand.
    • PMI remains above 50.0, but one-month moving average failed to cross above the three-month.
    • The real test is Global PMI.
  • The Sand Demand: Finding Opportunities Beyond Direct Shale Plays
    Sep. 19, 2014 UNP, EMES 1 Comment

    Summary

    • How to identify companies that contribute to the energy boom.
    • Why sand is a valuable ingredient for fracking, and how this contributes to its demand growth.
    • So who is supplying and shipping the sand?
  • Patiently Waiting For Mean Reversion
    Sep. 16, 2014 SPY, QQQ, SH 9 Comments

    Summary

    • What does the recent underperformance in small caps mean for investors?
    • The importance of active management in a bear market.
    • A note on the strong U.S. dollar and gold.
  • U.S. ISM Manufacturing Index Heats Up While China PMI Cools
    Sep. 12, 2014 FXI, DIA, SPY Comment!

    Summary

    • Global PMI is showing a slight uptick in August, with the U.S. as a top driver.
    • So what can we attribute China's PMI slowdown to?
    • Also, the effect of employment data on the global economy.
  • Gold Jewelry Demand In India Improves
    Aug. 27, 2014 Comment!

    Summary

    • Gold premiums are up this month compared to July.
    • Global celebrations are triggering the Love Trade for gold purchases.
    • The World Gold Council highlights gold's importance in India.