2024-03-27 06:16:59 ET
Summary
- Inflation is likely to accelerate and investors should consider hedges against it.
- PICK has a competitive management fee, a meaningful dividend, and a relatively low percentage of U.S. equities (for a global fund).
- The Fund's exclusion of silver and gold miners is a drawback, and the Fund has not performed well relative to the broad market and one of its competitors.
Introduction
In an article published on Seeking Alpha earlier in 2024, I wrote:
Over the next 24 months, I am positioning my portfolio for several events, including a re-acceleration of inflation. While I believe the pundits on Wall Street and Washington want to pretend that we are headed toward 2% inflation, the numbers are telling another story - earlier this month, we learned that the consumer price index (" CPI ") for February 2024 rose at a faster pace for the second month in a row. The CPI rose 0.4%, up from 0.3% in January, and the core inflation rate, minus food and energy, rose at 0.4% for the second month in a row, or 3.8%. In addition, the producer-price-index for February rose 0.60% versus estimates of 0.30%. With the national debt rising by $1 Trillion every 100 days , and gold reaching record highs , I think the market is telling us that inflation is going to be a problem going forward. And from my perspective, what choice does the U.S. government have (other than inflating away the exorbitant federal debt?): it cannot slow its spending (never mind pay down debt) without crushing the economy, and politicians are not going to allow that to happen (if they can help it). In short, a second wave of inflation is coming."
Read the full article on Seeking Alpha
For further details see:
Bullish On Metals And Mining - Get Your PICK?