Over the next few months, EEM (iShares MSCI Emerging Markets ETF) may offer more compelling upside potential than SPY (SPDR S&P 500 ETF) due to the relative valuation gap between emerging markets and U.S. equities. The S&P 500 has been trading at historically high price-to-earnings multiples, largely driven by a handful of mega-cap tech stocks. This concentration risk leaves SPY more vulnerable to any sentiment shift in the U.S. tech sector. In contrast, EEM holds a more diversified exposure across countries like China, India, Brazil, and Taiwan, many of which are trading at significant valuation discounts relative to the U.S. This gives investors the opportunity to buy growth at a cheaper price, potentially leading to stronger returns if valuations mean-revert. Here is a chart of the ratio between EEM and SPY. Emerging markets have been underperforming for a long time. The trend has ended this year. Another advantage for EEM

The market was kind to us during July. Our company account, which invests and trades natural resource stocks and ETFs, was up 9.10%, which brought the year-to-date return to 62.15%. It was a balanced advance in energy stocks and some of the precious metals miners. We were relatively inactive during July. We have trimmed some of our positions towards the end of the month to raise cash for other opportunities in the near future. Also, we believe that the stock market in general is very overbought and overvalued; therefore, we don’t want to be overexposed (if the market corrects, it can take some of our positions down with it). We are currently 70% invested and are waiting to deploy cash in case of weakness. We believe that Gold is about to finish the trading range, which has been in place for nearly four months. The resolution should be to the