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Mike Gleason: We are fortunate today to be joined again by Frank Holmes, CEO and Chief Investment Officer at US Global Investors. Mr. Holmes has received various honors in recent months including being named America’s Best Fund Manager for 2016 by The Mining Journal and received two more Lipper awards just last month in both the three year and five year precious metals equity funds categories.
He’s also the co-author of the book The Goldwatcher: Demystifying Gold Investing and is a regular guest on CNBC, Bloomberg, Fox Business, as well as right here on the Money Metals podcast. Frank, welcome back and thanks for joining us again. How are you today?
Frank Holmes: I’m well, thank you.
Mike Gleason: You mentioned back in January when we had you on right before Donald Trump’s inauguration that the first 100 days of his presidency would be a key on several fronts. Give us your thoughts on what these first 100 days have looked like. What have you gleaned from the last few months as you’ve been evaluating his policy decisions and the market’s reaction to those?
Frank Holmes: Well, I think it’s really difficult to grasp the difficulties of getting change in Washington. There’s just so many people that are addicted, from lobbyists to whatever on regulations and more rules and regulations. Regulations for taxation for every agency there is. It’s been much more difficult for him to tackle that than it was expected, and that’s recently showing up with interest rates falling back below and giving a negative interest rates, gold rallying from that. I think it’s hard for the average investor because something like 70% of the media is biased, and they’re pro-Democrat no matter what it is, and so you find the narrative from even so many business columns are wanting Trump to fail.
I find that really saddening because a great investor, the greatest in the world, Warren Buffett, who bet on Hillary Clinton and then when Trump won he said, “Well, I’m behind the President and if he does well we all do well, so that’s what I’m going to do,” and I’m more of a Buffett cheerleader in a thought process, so I think it confuses a lot of people that how difficult it is, and I think that to really read through his message, that he wants bilateral agreements, he wants to renegotiate agreements with the benefit to the middle class of America. I think that that’s very positive, but no matter what he does, we’re just getting skewed with a negative sentiment.
Government’s basically have two levers to manage the economy. One is monetary policy, the other is fiscal policy. Monetary policy is money supply and real interest rates. Fiscal policy is tax and spend and regulations are an indirect taxation on a sector of the economy. When it comes back, what we witnessed under Obama was an administration that was on …read more
Source:: Gold Silver Worlds
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