VICE FUND: JANUARY 2023 – COMMENTARY LETTER
The Vice Fund returned +2.52% in January.
Market Review
Economic data provided a boost to equities in January. Real GDP grew at an annualized 2.9%, core spending remained positive, and the job market remained strong with nonfarm payroll gains for January –the strongest gain in a year. Moreover, high inflation expectations were more muted than in past months with a bit more dovish comments coming from Fed Chair Powell.
However, there remains a myriad of concerning issues. Corporate earnings showed little growth, the yield curve remains inverted, and wage growth is an area of concern for the Fed. February offers more data on jobs, consumer price index (CPI), and retail sales.
January was decidedly a risk-on affair with growth stocks outperforming dividend-yielding value stocks. Some believe a more moderate Fed may fuel January’s winners back to 2021 valuations. However, we believe a more likely scenario is that 2022 was no fluke one-hit wonder as value stocks outperformed growth stocks. Historically this type of rotation has taken years to play out. We equate the current period close to the Nasdaq bubble of the late 1990s. In our opinion, it will take years to remove the froth in high-growth stocks.
Sincerely yours,
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-MUTUALS or visit our website at www.USAMutuals.com. Read the prospectus or summary prospectus carefully before investing.
Standardized performance as of (12/31/2022) Fund Inception (02/01/2002)
| 1 Year | 5 Year | 10 Year | Since Inception | |
| VICEX | -3.25% | 0.07% | 6.55% | 7.99% |
| MSCI World Index | -17.96% | 5.75% | 8.54% | 8.23% |
Investor Class performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expense 1.64% and 1.49%. Contractual fee waivers through 07/31/2023.
DEFINITIONS:
The MSCI All Country World Index Total Return (“MSCI ACWI TR”) captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.
SYMBOL: VICEX
