Employee of the Week-- XME

The SPDR S&P Metals and Mining ETF, symbol XME, was up 8.61% for the week, second only to SIVR at 9.1%.  We hired XME about a year ago, one of the first steps taken in the construction of the fiat fantasy portfolio.

The top three holdings are Hecla Mining (silver and gold mining), Massey Energy (coal mining), and Arch Coal (coal).  Steel is the major sub-industry group.  In their June 30 annual report, management attributes the strong performance of XME to three factors.  First, increased demand for base metals stemming from the growth in Asian infrastructure development.  Second, the increase in the price of precious metals.  Third, the near doubling in the price of iron ore and steel.