NEW YORK, NY – July 20, 2020
Midas MarketScope The consumer-price index (“CPI”) rose 0.6% in June after falling in the previous three months. Some economists believe that the rise in CPI represents the beginning of a return to normal for prices.
Gasoline prices rose 12.3% in June, accounting for more than half of the June increase in CPI. Other commentators have suggested that in the latter stages of a recovery, amid continued de-globalization in goods trade
and less elastic global supply, fiscal policies may begin to stoke inflation. Moreover, some economic data might already point to price pressures. U.S. money supply is surging, and might see its largest increase in peacetime
this year, which could be followed by an “inflationary boom.”
Midas Fund The Fund’s holding of Dundee Precious Metals Inc., a gold mining company with operations in Bulgaria and Namibia, performed well in the last month. Shares of Northern Star Resources Ltd., an Australian gold producer with gold mines located in Australia and North America, have underperformed in the last month.
The Fund seeks primarily capital appreciation and protection against inflation and, secondarily, current income through investments primarily in precious metals mining and other natural resource companies, as well as gold, silver, and platinum bullion. Using a disciplined approach, the Fund seeks to emphasize gold and other natural resource companies offering financial strength, expanding production profiles, strong free cash flow, and promising exploration potential. The Fund currently is invested in a global portfolio of primarily large and medium gold and diversified mining companies, precious metals royalty companies, and ETFs holding gold
and silver bullion.
Midas Magic The Fund’s position in Medifast, Inc., a company that produces and sells products for weight loss, weight management, and healthy living, continued to perform well in the last month. The Fund’s holding of AMC Networks Inc., a company that owns several cable networks including AMC, WE tv, and SundanceTV, hindered the Fund’s performance in the past month. Each of Mastercard Inc. Class A and Alphabet Inc. Class A currently comprise more than 10% of the Fund’s net assets.
The Fund seeks capital appreciation. Relative to the S&P 500, the Fund’s portfolio currently is more weighted in cyclical companies, such as financial services, and is underweight in economically sensitive and defensive industries. The Fund generally focuses on companies that appear to have strong operations showing superior returns on equity and assets with reasonable valuations.