Global stock markets regained their footing this past week, as all but one of your positions in your Global Stock Investor portfolio ended higher.
Your best-performing position for the week was iShares MSCI Turkey Invest Mkt Index ETF (TUR), which ended the week 4.2% higher. Several other positions in your Global Stock Investor portfolio also hit highs for the year — the UltraShort Euro ProShares (EUO), Market Vectors Russia ETF (RSX), Brazil’s VALE S.A. (VALE) and Market Vectors Indonesia ETF (IDX). As a result, I have tightened the stops on many of your positions.
After the sharp sell-off in January where many of your current holdings plunged more than 15%, global markets are feeling much steadier. Volatility has ebbed substantially. The economies of Turkey, Korea, and Indonesia are recovering more strongly than expected. Global demand for iron ore, steel, and copper are all recovering — which should give you additional confidence in cyclical stocks like VALE S.A. (VALE), Arcelor Mittal (MT) and Freeport-McMoRan Copper & Gold Inc. (FCX).
But as always, remember to stick to your stops.
Portfolio Update
Market Vectors Brazil Small-Cap ETF (BRF) ended the week slightly lower. With the Brazilian economy booming, BRF remains a BUY.
The WisdomTree Dreyfus Chinese Yuan Fund (CYB) rose slightly this past week. Debate about the Chinese yuan exchange rate will become more heated in April. That’s when the U.S. Treasury is scheduled to release its semi-annual FX report, which will press for "more FX flexibility." Meanwhile, Chinese officials continue to downplay the yuan’s role in U.S.-China trade imbalances. CYB remains a HOLD.
UltraShort Euro ProShares (EUO) hit a record high of $21.54, and ended the week 1.25% higher. With Europe still facing grave structural problems, your bet against the euro remains a BUY. Raise your stop to $19.80.
iShares MSCI South Korea Index Fund (EWY) rose 1.0% this past week, as South Korea is flirting with highs last seen in January. With South Korea’s current account surplus widening in March as stronger demand overseas fuels growth in exports, EWY remains a BUY. Raise your stop to $44.25.
Freeport-McMoRan Copper & Gold Inc. (FCX) rose 3.16% this past week. With copper prices up sharply in recent days, FCX remains a BUY.
Market Vectors Indonesia ETF (IDX) hit a record high of $71.16 last on Monday, before ending the week 2.13% higher. With Indonesia the top-performing market in Q1 of 2010, IDX remains a BUY. Raise your stop to $63.50.
Arcelor Mittal (MT) rose 1.36% this week. The company is reviewing the proposal of the Ukrainian steel group Donetskstal for the creation of a 50/50 joint venture for the production of coking coal on the premises of the Karagaylinskaya mine, located in Russia’s Kemerovo region. MT remains a BUY. Raise your stop to $37.00.
Market Vectors Russia ETF (RSX) rose 2.9%, hitting a yearly high of $34.17 on Monday. The “bad boy of emerging markets” turned out to be the best performer among the BRICs in Q1. RSX is a BUY. Raise your stop to $29.50.
iShares MSCI Turkey Invest Mkt Index (TUR) rose 4.62% this week. Look for this ETF to rise further today, since Turkey’s stocks rose this morning, as data showed that the economy grew a greater-than-expected 6%. Most analysts expected the economy to grow 4.5%. That’s a huge positive surprise. TUR remains a BUY. Raise your stop to $49.00.
VALE S.A. (VALE) rose another 2.28% this past week, hitting a new high for the year. Vale rose on news that this week it reached a deal with Japanese steelmakers to up prices by 90%. It was also upgraded by Canaccord Adams to “buy” on stronger forecasts for iron-ore prices. VALE remains a BUY. Raise your stop to $27.80.
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