Dr. John Hussman recently turned quite bullish on gold equities due to several encouraging economic and market indicators.
The founder of The Hussman Funds noted in his latest Weekly Market Comment that his firm’s Total Strategic Return Fund raised its holdings of gold shares to 18%.
“Notably, and in contrast to the broad stock and bond markets, our measures of prospective return/risk in gold shares has surged, with falling long-term yields, negative real interest rates, weakening economic statistics and a very high gold/XAU ratio all provoking a distinct jump in our expected return/risk measures for gold stocks,” Hussman wrote.
As a result, Hussman – many of whose funds have substantially outperformed the S&P 500 Index over the past decade – stated that “we’ve built Strategic Total Return’s exposure to precious metals shares to nearly 18% of assets, which is significant, but far from the most aggressive 30% exposure that the Fund could hold (which would require stronger inflation pressures and a weaker ISM, combining to create severe pressure on the U.S. dollar). Even near 18% of assets, however, fluctuations in gold stocks are likely to be the most important driver of day-to-day fluctuations in the Fund here.”
West kirkland makes key hire, launches nevada drilling
West Kirkland Mining (WKM.TSXV) announced the appointment of Kent Samuelson to its technical team as Manager, Nevada & Utah. Mr. Samuelson is a Professional Geologist with more than 25 years of exploration and development experience throughout the western United States. The company also announced the start of drilling on the KB Property in Nevada. Major Drilling America, Inc. has mobilized a reverse circulation rig to the property and is drilling targets generated by soil and rock sampling. Full West Kirkland Mining Press Release.
