PRECIOUS METALS HIGH YIELD BULL FUND STRATEGY
The Precious Metals High Yield Bull Strategy (“Strategy”) provides uncorrelated performance. The program utilizes multiple option writing strategies, according to the levels of precious metal (“PM”) ETFs and their respective time premiums to further enhance profits and yields.
As PMs rally, option premiums typically rise. This performance-compounding aspect adds to the attractiveness of investing in this asset class via the Strategy. This program seeks to outperform the low-yielding alternatives available today, particularly on a real-returns basis against an ever-worsening inflationary background.
While aiming to provide extraordinary annual returns, this differentiated Strategy represents timely diversification by employing a program that, based on historical long and intermediate term trends, is expected to perform asymmetrically to the broad stock indices.
When common stocks advance, their yields decline unless dividends increase; this represents a distinct advantage for the Strategy versus other financial instruments.
Simply, as rates rise, stocks and bonds typically fall. Meanwhile, as PMs rise, so do their respective option premiums; all things being equal, the latter represents increasing yields. Therefore, inflation-adjusted negative yields represent poor competition against this Strategy that aims to also provide the high yielding product that investors are seeking today.