Global Stock Investor Hotline 13

Nicholas Vardy

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

Global stock markets took a breather last week as most of your Global Stock Investor equity positions consolidated their recent gains. However, Asian markets soared overnight after the strong performance of the U.S. stock market yesterday. The iShares MSCI Taiwan Index (EWT) rose about 3% last week, and added another 3% overnight. The Indian market also added almost 4%, which should benefit your new position in ICICI Bank Ltd. (IBN) in today’s trading.

Advertisement.

Global assets — whether in the form of stocks, commodities and currencies — are now benefiting from a strong new tailwind: the sudden weakness of the U.S. dollar. Remember, every time the U.S. dollar drops, your positions in foreign stocks and currencies gain by the same amount, as higher value foreign currencies are translated back into U.S. dollars.

The U.S. dollar is now firmly back on a downward path, as concerns about the Obama administration’s spending plans are finally sinking in. After Standard & Poor’s put the United Kingdom’s AAA rating on negative watch, concerns have risen that a downgrade of the U.S. credit rating cannot be far behind. With the negative trend against the U.S. dollar overwhelming the euro’s fundamental weakness, I moved UltraShort Euro ProShares (EUO) to a HOLD last week. This may turn into a SELL very shortly.

Your position in the UltraShort Lehman 20+ Treasury ProShares (TBT) jumped 7.9% this week over concerns about the long end of the Treasury market. The Treasury yield curve has been as steep as it is today only two other times in recent history. Unlike on the other occasions, this steepening is led not by a reduction in short-term interest rates but rather by a rise in long-term interest rates. This is the perfect storm against Treasuries: long-term interest rates are being pushed higher as inflation expectations rise. Meanwhile, the Treasury is embarking on the most massive bond sales in history, flooding the market with unprecedented supply. Bad news for Treasuries is good news for TBT — as well as all of your positions in foreign stocks and currencies.

Advertisement.

Portfolio Update

Exclusive  George Gilder Discusses Blockchain, the Graphene Age and More in Interview on NYSE Floor

The WisdomTree Dreyfus Chinese Yuan Fund (CYB) rose to a record high of $25.60. It’s difficult to glean the central bank’s intent behind the recent spike in the central parity, but some said it may be a defiant message to U.S. Treasury Secretary Timothy Geithner’s imminent visit to China this coming weekend. CYB remains a defensive BUY.

The iShares MSCI Taiwan Index (EWT) rose over 3% in the past week and was up another 3% in overnight trading. Some 64.5% of the Taiwan public is optimistic about the developing relations with mainland China over the coming year. EWT remains a BUY.

The UltraShort Euro ProShares (EUO) is falling precipitously as the dollar weakens across the board. EUO is now a HOLD.

Advertisement.

Freeport-McMoRan Copper & Gold Inc. (FCX) stayed around the $50 level for the week. With copper prices improving to about $2/lb thanks to record purchases from China, I am still bullish on the Asian-led economic recovery and the price of copper. FCX is a BUY.

ICICI Bank Ltd. (IBN) will rise in today’s trading along with the rest of the Indian market. With India mustering up 5% to 5.5% growth this year, and recent elections guaranteeing further economic reform, IBN is a BUY.

Chemical & Mining Co. of Chile Inc. (SQM) fell slightly this week. With Chile boasting among the best fundamentals in emerging markets, SQM remains a BUY.

The UltraShort Lehman 20+ Treasury ProShares ETF (TBT) soared above the $55 mark this past week. With U.S. Treasuries getting hammered, the U.S Treasury bubble may be set to pop. TBT remains a BUY.

Exclusive  Day Trading Uses Three Strategies of Andrews’ Pitchfork

Advertisement.
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


img
share on:

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

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

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

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

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

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
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.

  • Dividend Investor
LEARN MORE HERE

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
LEARN MORE HERE

DayTradeSPY

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
LEARN MORE HERE