Resources

Vimco invests a portion of its customer portfolios in resources. Vimco's fund managers travel around the world looking for the most interesting materials, mining and exploration companies in the precious metals, base metals and energy sectors.

The resources sector is more speculative than value investments, but is an excellent way to achieve additional returns with a small investment (and therefore limited risk). For example, Vimco has achieved several thousand percent gains for its customers.

Undervaluation

In the current market of substantially reduced commodity prices, there is significant room for upside potential. The resources sector relative to the S&P 500 index has never been as cheap as now. Historically, the extreme valuation divergence between the S&P 500 and commodities has only occurred twice before, each followed by a significant increase.

Therefore, the resources sector fits exceptionally well in Vimco's strategy to buy significantly undervalued companies.

Insurance

Gold and silver retain their value and are true safe havens for investors. In a time of unstable global politics, extreme levels of government debt and rogue central banks that potentially create significant credit bubbles, it is not unwise to take a position in precious metals. When stock markets fall, gold- and silver prices tend to significantly increase. Because of this leverage, a modest investment in precious metals can severely limit the impact of a financial crisis on an investment portfolio. An insurance, as it were.

Copyright © 2018 Vimco Luxembourg S.A. All rights reserved      |      Disclaimer      |      Powered by Manieu.nl