The Global Bull Takes A Breather 2

Nicholas Vardy

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

As of now, investors are more cautious than panicked. But with the markets up sharply and technically overbought since early March, the current scare may be an excuse for markets to take a breather.

This recent uncertainty notwithstanding, your Global Bull Market Alert portfolio had a solid week. Your two positions in emerging markets — the iShares MSCI Taiwan Index (EWT) and the iShares MSCI BRIC Index ETF (BKF) — rose sharply, and now are up 4.4% and 7.9%, respectively, since our initial recommendation.

Both the SPDR Gold Shares ETF (GLD) and the PowerShares DB Gold Double Long ETN (DGP) rose 5.3% and 11.44% last week, respectively, boosted by news that China has nearly doubled its gold reserves since 2003 to become the world’s fifth-largest holder of gold, behind Italy. Your other holding in metals, the iPath DJ AIG Copper TR Sub-Idx ETN (JJC), fell last week, but still is up 11% since my initial recommendation.

All of your other positions, with the exception of your short position in the CurrencyShares British Pound Sterling Trust (FXB), remain BUYS.

Portfolio Update

The iShares MSCI BRIC Index ETF (BKF) hit a high last week not seen since Oct. 3, as the big emerging markets continue to outperform their developed peers. BKF is a BUY.

The Market Vectors Double Short Euro ETN (DRR) dropped last week, despite continued signs that the eurozone is in worse shape than the United States. DRR is a BUY.

The iShares MSCI Chile Investable Market Index (ECH) was flat last week. With no sector accounting for more than a 15% weighting, and financials only accounting for roughly 10% of the index fund, this is one of the most emerging market ETFs around, and it remains a BUY.

Exclusive  Getting Back On the Silver Bull

The iShares MSCI Taiwan Index (EWT) got off to a solid start, jumping 4.4% this past week. Momentum in this ETF is supported by a combination of increased demand from a still fast-growing China and a heavy weighting in the relatively strong technology sector. It remains a BUY. Tighten your stop to $7.80.

The CurrencyShares British Pound Sterling Trust (FXB) ended the week flat, despite the announcement of a widely derided budget by U.K. Chancellor Alistair Darling this past week. Although the pressure on the British pound sterling remains all on the downside, I am keeping this short position in FXB at a HOLD.

Both the SPDR Gold Shares ETF (GLD) and the PowerShares DB Gold Double Long ETN (DGP) had big weeks, as gold breached the $914 level for the first time since March. Gold tends to perform well when nervousness in the market increases. With both of these positions sharply oversold, I am moving the recommendation on each of them back to a BUY.

Your position in the iShares iBoxx $ High Yield Corporate Bond (HYG) sold off slightly last week. Look for a dividend payment coming up next week. HYG remains a BUY. Tighten your stop to $65.50.

The iPath DJ AIG Copper TR Sub-Idx ETN (JJC) fell back under the $30 level last week. With JJC now as oversold as it has been in months, I am keeping it at a BUY

Your Rydex Inverse Government Long Bond Strategy Inverse (RYJUX) jumped to $14.30, a level not seen since March 17. Your bet against U.S. Treasuries remains a BUY.

P.S. Gain the knowledge and insights you need to make smart investment decisions at the most important investor gathering in 2009. Join me for this year’s Money Show Las Vegas, May 11-14, 2009, at the Mandalay Bay Resort and learn how the experts are finding profitable opportunities during the market crisis and how to position your portfolio for safety and growth. To register FREE, call 800/970-4355 and mention priority code 012653 or register online!

Exclusive  GLOBAL STOCK INVESTOR HOTLINE UPDATE 71

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


img
previous article

Global markets have gotten choppier over the past week or so, as they stand on the cusp of a correction or a sharper move upwards. Overall, global stock markets are feeling healthier than even a month ago. If history is any guide, the market may head upwards for another few weeks, before it's time to "sell in May, go away."

PREMIUM SERVICES FOR INVESTORS

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

LEARN MORE HERE

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

LEARN MORE HERE

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

LEARN MORE HERE

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

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com 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.

LEARN MORE HERE