MILLBROOK, NY – July 20, 2022
For investors looking for positive signs in the market, second quarter dividend payouts from companies within the S&P 500 set another record for total amount paid. The payments totaled $140.6 billion in the second quarter, an increase from $137.6 billion the previous quarter. According to Howard Silverblatt, a senior index analyst at S&P Dow Jones Indices, payments are projected to grow more than 10% in 2022 compared to last year. Last year the total dividend payments totaled about $511 billion. High dividend paying stocks are among the better performers so far in 2022. For example, the S&P 500 High Dividend Index is down 4.7% in 2022 versus the S&P 500’s 19.5% decline. Meanwhile, longer term inflation expectations have decreased according to a survey from the Federal Reserve Bank of New York. Three years from now, inflation is expected to rise at 3.6%, down from 3.9% expected from May 2022’s survey. This easing of expectations is welcome news as it may show that the Central Bank’s aggressive interest rate increases may eventually contribute to moderating the recent high inflation. Lastly, the labor market continues to appear strong. The U.S. economy added 372,000 jobs in June 2022 and the unemployment rate at 3.6% is slightly above the half-century low reached prior to the onset of the 2020 pandemic.
Midas Fund The Fund’s holding of Maverix Metals Inc., a gold royalty and streaming company, performed well in the past month. Shares of Evolution Mining Ltd., an Australian gold mining company with projects in Australia and Canada, underperformed in the past month.
The Fund seeks primarily capital appreciation and protection against inflation and, secondarily, current income 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. 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 of Medifast Inc., a nutrition and weight loss company, performed well in the past month. The Fund’s holdings of Lam Research Corp., a supplier of wafer fabrication services to the semiconductor industry, 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 economically sensitive sectors, such as communications, and cyclical sectors, financial services, and is underweight in defensive industries, such as utilities.
How to Invest in Gold?
Three alternatives investors often consider when seeking the advantages of gold are gold bullion, stocks of gold mining companies, and funds that invest in gold and gold-related securities, such as Midas Fund. Using a disciplined approach, Midas 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’s portfolio is focused on what we believe to be some of the best companies in the sector and so we view Midas Fund as currently well positioned to seek capital appreciation and protection against inflation.