Frank Holmes Of U.S. Global Investors Likes Gold And Airlines

Frank Holmes Of U.S. Global Investors spoke on CNBC about his top picks in current market environment.

He revealed that his company has a long position in gold. He noticed that gold companies had great returns in Australia and Canada and he believes that they have been a safe place.

The airline stocks have also been a safe place. They had a record free cash flow in the industry because of low crude oil prices. The trend is going to continue in 2016 and he thinks that the sector is going to have attractive returns. He is trading the airlines sector with U.S. Global Jets ETF (NYSE: JETS), but he also owns Alaska Air Group, Inc.(NYSE: ALK) and Air China.

Holmes thinks that the energy sector could bottom in the Q1, after the energy companies report write downs. He added that companies with low debt could do well.