 |
| Image via Wikipedia |
The Fund is overseen by Peter Schiff, investment committee chairperson, and managed by Jim Nelson, CFA; the same team that oversees Euro Pacific Asset Management's other fund offerings. Patrick Rien, CFA, will serve as co-manager of the Fund. The Fund is designed for US-based investors who would like get exposure to US equity markets by owning a basket of American companies that derive a majority of their earnings from overseas. It is expected that such companies will benefit from an environment of US dollar weakness."Many American investors believe strongly that global economic conditions will continue to push up key foreign markets at a faster growth trajectory than what will likely be seen in the United States" said Peter Schiff. "At the same time, many of these investors want, or in some cases need, to maintain exposure to the US equity market. We hope to bridge this gap by offering a fund that holds US companies that derive a majority of their earnings abroad."The Fund's portfolio management team will use a top-down approach to target attractive markets abroad, and a bottom-up approach to select US companies with the best fundamentals that have exposure to those markets. The team will favor markets that have shown a willingness to allow their currencies to strengthen against the US dollar, and that have high expected GDP growth, positive real interest rates, a sustainable current account surplus, and low levels of private and public debt. Additionally, the team will focus on companies that may benefit from country-specific trends such as growth in consumer spending, increasing foreign investment, or plentiful access to natural resources."In an environment where the Dollar is weakening, it is of critical importance for investors to understand that some US companies are likely to perform better than others," said Jim Nelson. "With the EP Strategic US Equity Fund, an investor can own US businesses with overseas exposure to what we believe are the most attractive markets, while minimizing ownership of those firms focused solely on the spending habits of US consumers."
Following the recent Gold and Silver sell-offs, Peter has written an update to his subscribers:
Friends,
This past week has been a rout for precious metals. From last Monday to today, gold has dropped 10.9% and silver dropped 30.4% (per the London fix). For gold, from $1794 to $1598, and for silver, from $40.46 to $28.16.
The metals have been on a tear for the past few years. Because of this, investors and speculators that do not understand the fundamentals appear to have joined the bull run, and then quickly departed at the first sign of trouble. Good riddance to them, I say. While sharp declines do test the mettle of some value investors, I believe this leaner market presents a great buying opportunity.
The situation in Europe continues to deteriorate daily. Greece is in default and larger EU members look sure to follow. Meanwhile, gridlock is the password in Washington. QE III is coming, and with it, the dollar is headed for another big decline in purchasing power. The Swiss National Bank just instituted a peg to curb inflows of global investors seeking a safe haven – costing franc holders 25% of their position in the course of a week.
To me, this situation screams, "buy gold!" But, unfortunately, herd-like investors are being corralled into the US dollar. However, as with any move that defies reason and economic law, this will not last.
We can see the stock has done nothing for 5 years although profits have constantly improve. The stock got hammered in August 2010 after it made a stock offering and diluted the shares.
