Venture: Portfolio Update

Issue 65;

Trump has stepped back from the worst of the tariffs, and the market has rallied. Yet, huge damage has been left behind. UK large-caps (black) have held up well, but small- and mid-caps have fared worse. Yet, the dollar is down, and the Nasdaq futures, which rallied last night, have turned down in GBP. The shift of capital back to the UK and Europe continues.

UK, Europe and the Nasdaq in GBP

Source: Bloomberg

Recent days have once again demonstrated gold’s strength as a safe haven asset during troubled times. Venture holds some gold stocks and will hopefully add to the list, but there is a curious thing going on. Just as the price of gold has risen to all-time highs, investors are withdrawing money from the gold funds at an alarming pace. I highlight the exploration company Seabridge (SEA Canada), which has massive reserves that it will likely never mine. It ought to be a highly geared play in this gold bull market but has recently failed to participate.

Fund Flows: Seabridge and GDX Gold Mining ETF

Source: Bloomberg

Seeing huge outflows of capital from the gold miners is a curious thing to see when the price of gold is so high. The good news is that at least we know what is holding the miners back. Now that the tech sector has taken a blow, investors will start to look for alternatives. They’ll find the gold miners soon enough.