MILLBROOK, NY – October 25, 2022
Earnings releases of companies results for the quarter ended September 30, 2022 have begun to be posted. These reports may provide investors a sense of how businesses are managing in the face of high inflation, continued supply chain issues and rising interest rates. Looking at a few notable releases, JPMorgan Chase beat revenue estimates generating revenue of $33.49 billion. However, profit fell as the firm increased reserves for bad loans, the amount in bad debt that is not expected to be collected, by $800 million. Although JPMorgan CEO Jamie Dimon has expressed worry about a potential recession within a year, he emphasized that JPMorgan would not be slowing hiring plans or lowering its investment in technology and banking. Another company that may provide insight into American consumers that reported results is American Express which said there were “no changes in the spending behaviors of our customers.” CEO Stephen Squeri also noted, “We’re seeing strong growth and we’re seeing strong credit results overall. So right now, nothing new.” Earnings releases may be a valuable tool for investors because of the insights they can provide.
Midas Fund The Fund’s holding of Perseus Mining Ltd., an African gold miner, performed well in the past month. Shares of Sandstorm Gold Ltd., a gold royalty company, underperformed in the past 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. 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 Elevance Health Inc., an American health insurance provider, performed well in the past month. The Fund’s holdings of LCI Industries Inc., a manufacturer of recreational vehicle products, 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.