Mozart, Arnold Schwarzenegger, and the Blue Danube…

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

Welcome to the inaugural issue of Vardy’s Global Bull Market Alert, where we’ll be investing in the world’s hottest markets. To start building our portfolio, we’re starting out with one pick a week over the next several weeks. So let’s get to it.


As investors in the U.S. markets are nursing losses in the low single digits so far in 2005, investors in Austria have already reaped profits of 24.4% in dollar terms.

Long ridiculed as backward and lethargic compared with its larger Western European rivals, Austria has quietly overtaken the stagnating European Union (EU) economies by almost every measure.

The source of Austria’s new-found success as Western Europe’s stock market champion is no mystery: a cut in its corporate income tax rate from 34% to 25%, a tax cut package that has put more money in consumers’ pockets, and the long overdue privatization of the Austrian national pension system.


The combination of free market reforms like Austria’s has been a huge boon to the stock markets of other countries around the globe including Chile — where graduates of the University of Chicago (the "Chicago Boys") implemented similar policies in the early 1980s.

In addition, Austrian blue chips — like oil and gas company OMV, Telekom Austria and Erste Bank — are raking in hefty profits from well-timed investments into the fast growth economies of the new EU members of the "New Europe." OMV is one of the leaders of expansion in the region (and already up 200% in the past two years), Telekom Austria recently announced a 50% jump in net profits, and Erste Bank recently reported earnings that were up 21%… handily beating analysts’ estimates.

Furthermore, as James Oates, a London Junto member and senior advisor to Austria’s leading investment bank CAIB, pointed out to me at a recent lunch, the Austrian stock market has become a magnet for the listing of fast growth Central European startups like Slovakia based discount airline Sky Europe.

With lower labor costs, flat tax regimes, and economic growth rates two or three times that of "Old Europe," profits from the countries of "New Europe" (Estonia, Lithuania, Latvia, Hungary, Poland, the Czech Republic, Slovenia and Slovakia) will ensure that the Austrian stock market will continue to generate rich investment profits for investors.


The recent — and usual — October pullback in global markets provides the perfect opportunity to take a position in Austria. The best way to play the Austrian bull market is by investing in the Austria ETF (Exchange Traded Fund), symbol NYSE: EWO. OMV, Telecom Austria and Erste Bank are the top three components in the Austrian ETF — together making up just under half of the ETF. The remaining stocks are other fast growth Austria plays. Let’s make this our first position and buy it at market today. Place a protective stop at $21.75. (There are no options on this one.)

The fourth quarter has been traditionally the strongest quarter for Austrian stocks. So there is plenty of upside for Global Bull Market Alert Subscribers.

share on:

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle


DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops