Global markets continue to rally sharply as January so far is shaping up as a very strong month.
Five of your positions in your Global Stock Investor portfolio are showing gains of 30% or more and an additional three positions are up 20% or more. All of these recommendations remain BUYS. Your three new positions as of last week — Agrium (AGU), JinkoSolar Holding Co., Ltd. (JKS) and the Global X FTSE Nordic 30 ETF (GXF) — all are solidly up over the past five trading days.
Anything technology related, including country-specific exchange-traded funds, with a heavy technology weighting like iShares MSCI Taiwan Index (EWT) and the iShares MSCI South Korea Index (EWY) is doing particularly well. That also is why you are seeing strength in JinkoSolar Holding Co., Ltd. (JKS) and Universal Display Corp. (PANL).
Only two positions, Claymore/BNY Mellon Frontier Markets (FRN) and Market Vectors Indonesia ETF (IDX), are on HOLD.
Among global emerging stock markets, only Asian markets like iShares MSCI Malaysia Index (EWM) are really holding their own. Another exception is the country everyone loves to hate — Russia — which continues to soar through the Market Vectors Russia ETF (RSX).
Overall, strength of global markets continues to be a pleasant surprise. In many ways, this strong January is a sign that global markets have stabilized. But as I have noted, high levels of optimism in global financial markets often are followed by sharp sell-offs. And you need to be prepared for that as well. That said, our aim is to stick with those stocks that have solid medium and long-term potential.
If you’re looking for fast-paced short-term trades, you might want to take a look at my trading service, Global Bull Market Alert, which is racking up big triple-digit percentage profits in option plays almost on a weekly basis.
From a risk-management standpoint, our overall investment strategy remains the same. If a position has fallen below its 50-day moving average, I am moving it to (or keeping it at) a HOLD. If a position rises back through its 50-day moving average, then I have moved it back to a BUY.
Finally, I will be having a special private meeting for my subscribers during the World MoneyShow in Orlando, Fla., on Friday, Feb. 11, at 11 a.m., in the Destin Room of the Gaylord Palms Hotel. If you would like to attend, please click here to sign up. I look forward to seeing you there.
Agrium (AGU) jumped 4.26% in its first week in the portfolio, as fertilizer stocks continue to boom on fears of food inflation. AGU is a BUY.
The WisdomTree Dreyfus Chinese Yuan Fund (CYB) was flat this weekend, even as President Obama is hosting Chinese President Hu Jintau for a state dinner at the White House. Trading above its 50-day moving average, CYB is a BUY.
iShares MSCI Malaysia Index (EWM) rose 1.22% this past week. Sales of new vehicles in Malaysia hit a record high in 2010 in Southeast Asia’s biggest passenger car market. EWM remains a BUY.
iShares MSCI Taiwan Index (EWT) rose 1.55% in the last five days. This tech heavy index continues to perform in line with the Nasdaq. EWT remains a BUY.
iShares MSCI South Korea Index (EWY) jumped 1.93% last week. The Bank of Korea surprised markets by raising its benchmark interest rate by 25 basis points on Jan. 13, with record-high food prices threatening an escalation of inflation around the world. Trading near its highs, EWY remains a BUY.
Freeport-McMoRan Copper & Gold, Inc. (FCX) actually fell back this week — one of the few negative weeks in recent memory. A combined play on both copper and gold, FCX remains a BUY.
Claymore/BNY Mellon Frontier Markets (FRN) rose slightly this week and continues to hug its 50-day moving average. Unable to stay above this crucial level, this bet on Chile, Colombia, Poland and other frontier markets remains a HOLD.
Global X FTSE Nordic 30 ETF (GXF) rose 3.77% this past week, as Nordic markets, led by Sweden and Norway, powered ahead. Sweden and Norway will grow faster this year than previously forecast as increased consumer spending spurs economic output, prompting central banks in both Nordic nations to raise interest rates. GXF is a BUY.
Market Vectors Indonesia ETF (IDX) rose 2.56% this past week. One of 2010’s top-performing markets, Indonesia is underperforming so far in 2011. Below its 50-day moving average, IDX is a cautious HOLD.
JinkoSolar Holding Co., Ltd. (JKS) jumped 10.72% in the past five days — including a 7.89% jump yesterday after the latest chatter about potential feed-in tariff cuts in Germany made a hard cap on solar installations seem less likely. JKS remains a volatile BUY.
Las Vegas Sands Corp. (LVS) dropped 4.11%. Casino revenue in Macau, the world’s biggest gambling hub, may climb 30% to $30 billion this year as visitors from mainland China increase, CLSA Ltd. analysts said. Hugging its 50-day MA, LVS is a cautious BUY.
Market Vectors Russia ETF (RSX) rose 4.64% last week, as it burst through the $40 level for the first time in many years. You may hate it, but Russia is making money. The “bad boy” of emerging markets, RSX is a BUY.
Universal Display Corp. (PANL) jumped yet another 4.22% last week. A play on technology in general and exploding cell phone use globally through Samsung, PANL remains a BUY.
Vale S.A. (VALE) jumped 5.5%, as the stock traded near a new 52-week high yesterday of $37.25. The world’s biggest iron ore producer is a BUY.
P.S. Don’t miss out on The World MoneyShow Orlando, February 9-12, 2011, at The Gaylord Palms Resort. This event will be your one-stop resource for the education, research and advice that you need to make smart investment decisions in 2011 and beyond. Join me there and hear leading experts reveal where they see growth opportunities in stocks, bonds, ETFs, commodities and options. Click on this link to The World MoneyShow Orlando to register or call 800/970-4355. Be sure to provide priority code 020758!